Forex – Dollar Returns Near 3-Year Lows Vs. Other Majors

Dollar under pressure on government shutdown worries, Treasury yield surge – The U.S. dollar re-approached recent three-year los against other major currencies on Friday, amid fears of a potential government shutdown on Saturday and amid climbing U.S. Treasury yields.

Sentiment on the greenback remained vulnerable as U.S. lawmakers on Thursday, sparking fears of a government shutdown this weekend.

The dollar was also affected by the fact that the yield on the U.S. 10-year Treasury hit its highest level since 2014.

The dollar has been pressured lower in recen sessions amid concerns the global economic recovery will outpace U.S. growth and prompt other major central banks, including the European Central Bank to begin unwinding loose monetary policy at a faster pace.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.28% at 90.06 by 05:15 a.m. ET (09:15 GMT), moving closer to Wednesday’s three-year trough of 89.97.

The euro and the pound were higher, with up 0.35% at 1.2281 and with adding 0.11% to 1.3912.

Sterling retreated from session highs after data on Friday showed that UK retail sales in December.

The yen and the Swiss franc were stronger, with down 0.44% at 110.61 and with shedding 0.30% to 0.9559.

Elsewhere, the Australian dollar was also higher, with up 0.26% at 0.8020, while was little changed at 0.7301.

Meanwhile, was almost unchanged at 1.2414.

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