The dollar fell broadly on Thursday, tracking a slide in U.S. Treasury yields as markets grew more convinced the Federal Reserve was done with its aggressive monetary policy tightening cycle after it left rates unchanged.
However, Fed Chair Jerome Powell acknowledged that a recent market-driven rise in Treasury bond yields, home mortgage rates and other financing costs could have their own impact on the economy as long as they persist.
The dollar edged broadly lower alongside U.S. Treasury yields which touched multi-week lows in early Asia trade.
"This could take some time to develop and is one reason we are likely to see higher rates for longer."
The move lower in the dollar brought some respite for the yen, though it remained on the weaker side of 150 per dollar.
Persons:
Jerome Powell, Wells, Jay Bryson, Lon Erickson, Tom Kenny
Organizations:
Treasury, Federal, Fed, New, U.S, Traders, Thornburg Investment Management, Bank of Japan's, ANZ, Bank of
Locations:
U.S, Wall, Asia, New Zealand, Wells Fargo