The dollar fell on Thursday, despite receiving some support from rising U.S. Treasury yields, as traders assess the possibility of the Federal Reserve raising interest rates again, even if it refrains from doing so next week. Expectations are increasingly pointing toward potential further increases in U.S. and global interest rates, following unexpected rate hikes this week by the Bank of Canada and the Reserve Bank of Australia.
The Canadian dollar stabilized in latest transactions at 1.3365 per dollar, after rising to a one-month high of 1.3321 per dollar in the previous session. The U.S. dollar broadly declined in early Asian trading, with the British pound rising 0.08% to 1.2449 dollars, and the euro also climbing 0.08% to 1.0707 dollars.
Against the yen, the dollar decreased by 0.21% to 139.85, as the Japanese currency received support from data showing that the country's economy grew by 2.7% year-on-year in the first quarter, a significantly higher rate than the initial estimate of 1.6%.
The dollar index edged down slightly to 104.02, but it did not stray far from the two-month high reached last week along with rising Treasury yields. The Australian dollar increased by 0.18% to 0.6665 dollars, recovering from a nearly 0.3% drop in the previous session, while the New Zealand dollar rose 0.22% to 0.6050 dollars, offsetting some of the 0.7% decline recorded on Wednesday.
