Investing.com – The U.S. dollar was lower on Wednesday, amid fears that the Federal Reserve will increase interest rates higher than expected.
The , which measures the greenback’s strength against a basket of six major currencies, slumped 0.21% to 95.16 as of 11:16 AM ET (15:16 GMT).
A recent increase in bond yields has been driven this week by positive data that showed the Fed will increase rates in December and beyond.
The yield on the benchmark note rose to 3.214% after reaching a seven-year high of 3.261% the day before, while the Treasury bond was at 3.384%, not far from a four-year peak of 3.44%.
Meanwhile, the euro was higher due to the fall in the greenback, recovering from a selloff as Italy’s populist government and the European Commission went head-to-head over the country’s budget.
Brussels and Rome have been at odds over the country’s budget deficit plans for the next three years, which breach EC rules on running excessive deficits and high debt.
was up 0.28% to 1.1522 compared to an earlier low of 1.1434.
The pound was higher, amid reports that 80% of the treaty between the UK and the European Union is done. rose 0.41% to 1.3197.
The dollar slid lower against the yen, with down 0.26% to 112.66. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
The Australian dollar was lower, with falling 0.15% to 0.7092, while inched down 0.09% to 0.6469 and increased 0.36% to 1.2992.
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