U.S. Dollar Hits Yearly Low as Traders Eye Fed and BOJ Moves
The U.S. dollar reached its lowest level this year against the euro amidst anticipation of crucial revisions to U.S. payroll data and a key speech by Federal Reserve Chair Jerome Powell. U.S. bond yields also dipped, contributing to the dollar's decline. Traders are closely watching central banks' decisions for future rate changes.
![U.S. Dollar Hits Yearly Low as Traders Eye Fed and BOJ Moves](https://devdiscourse.blob.core.windows.net/aiimagegallery/05_07_2024_14_18_40_3413679.png)
The U.S. dollar reached its lowest level of the year against the euro on Wednesday, as traders prepared for potentially pivotal revisions to U.S. payroll data later in the day. The markets are also anticipating a key speech from Federal Reserve Chair Jerome Powell at the end of the week.
Bond yields in the U.S. hit their lowest since August 5, adding pressure on the dollar. "The reduced yield premium in the U.S. Treasury market has been a clear factor driving the USD lower," said Chris Weston, head of research at Pepperstone.
Meanwhile, the U.S. dollar index dipped to its lowest point since January 2 before recovering slightly. Traders are keeping a close eye on upcoming data and central bank movements for clues on the economic outlook.
(With inputs from agencies.)
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