TOKYO- The US dollar sagged near an 11-week low against its major peers on Wednesday, under pressure from sliding short-term Treasury yields after a run of weak economic data.
The safe-haven yen strengthened towards its highest level since October with investor sentiment fragile amid the threat of new rounds of tariffs from the administration of US President Donald Trump, whereas the Canadian dollar hovered near a two-week trough with additional levies due to hit next week.
“US data flow on net is now disappointing expectations, calling into question the US exceptionalism narrative that had been USD supportive,” said Tapas Strickland, head of market economics at National Australia Bank.
“Trade policy uncertainty is certainly creeping into sentiment,” hurting commodity-linked currencies and buoying those viewed as havens, Strickland said.
The US dollar index, which measures the currency against six major rivals, slipped 0.1 percent to 106.17 early in the Asian day, bringing it close to Monday’s low of 106.13, the weakest level since December 10.
A day earlier, the US Conference Board said its consumer confidence index dropped 7 points, its largest fall since August 2021, to 98.3, well short of the 102.5 estimate of economists polled by Reuters.
The result added to other weak data, pushing expectations toward two quarter-point interest rate cuts by the Federal Reserve over the remainder of this year, with the next likely coming in July, according to market pricing.
