Investing.com – The dollar fell against other currencies on Wednesday after a report that China may slow or halt its U.S. treasury purchases, with the greenback falling more than 1% against the Japanese yen.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, 0.23% to 92.02 by 11:56 AM ET (16:56 GMT). It recovered slightly from an overnight low of 91.67.
was down 1.01% at 111.52, the weakest level since November 29 and was on track for its largest one day decline in almost eight months.
The drop in the dollar came after Bloomberg reported that Chinese officials reviewing foreign-exchange holdings have recommended slowing or halting purchases of U.S. Treasuries. China is the largest foreign holder of U.S. Treasuries.
U.S. 10-Year Treasury yields rose to fresh 10-month highs following the report. Yields rise when bond prices fall.
Elsewhere, the euro rose around half a cent against the weaker dollar, with rising 0.24% to 1.1965.
The euro had weakened in recent sessions as investors took profits after its rally at the start of the year amid concerns that the European Central Bank may attempt to talk down the strengthening currency ahead of its monetary policy meeting later this month.
Sterling was down, with decreasing 0.20% to 1.3512. The Australian and New Zealand dollars rose, with up 0.22% to 0.7841 and trading at 0.7186, an increase of 0.36%.
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