The U.S. dollar remained under pressure on Thursday as it looked set to extend declines against major peers to a fourth day, hurt by Treasury yields wallowing near two-week lows amid rising concerns of a recession.
The safe-have yen bounced, climbing back from 24-year lows to the dollar. The risk-sensitive Australian dollar dropped, and the Korean won slid to its weakest level for 13 years.
The dollar index, which measures the currency against six key rivals, slipped 0.07% to 104.14, bringing its decline since Friday to 0.44%. It has fallen 1.54% from the two-decade peak of 105.79 reached on June 15, when the Federal Reserve raised rates by 75 basis points – the biggest hike since 1994.
Markets have become increasingly concerned that the Fed’s commitment to quelling red-hot inflation will spur a recession. Those worries sent the 10-year Treasury yields sliding to an almost two-week low.
Overnight, Fed Chair Jerome Powell said in testimony to Congress that the central bank is fully committed to bringing prices under control even if doing so risks an economic downturn.