The U.S. dollar is falling for a fourth consecutive day to its lowest level in more than two months as investors move out of the currency ahead of expected interest rate hikes by the U.S. Federal Reserve.
The greenback slipped 0.2% to 94.62 against a basket of currencies in early morning trading, its lowest level since early November last year. On a weekly basis, the U.S. dollar is set to weaken 1.11%, its biggest drop since December 2020. Yesterday (January 13), it fell below a 100-day moving average for the first time since June 2021.
Inflation-adjusted 10-year U.S. yields are up 40 basis points from the start of the year, threatening to undermine a stock market rally and weigh on economic prospects.
Against its rivals, the U.S. dollar's losses were most pronounced versus the Japanese yen and the Chinese yuan, against which it declined 0.4% and 0.3% respectively.
The euro currency is up more than 1% this week and has moved out of a range it has held since late November, hitting its highest peak since November 11 at $1.1483.
The U.S. dollar is now trading at 1.25056 per Canadian dollar.
