Dollar falls amid declining US Treasury yields

New York: The dollar decreased on Tuesday, as long-term US Treasury yields retreated again, raising worries over a potential economic slowdown.

The dollar index, which measures the greenback against six major peers, decreased 0.17 per cent at 98.1849 in late trading, the Xinhua news agency reported.

In late New York trading, the Euro rose to $1.1096 from $1.1081 in the previous session, and the British pound increased to $1.2165 from $1.2132 in the previous session. The Australian dollar was up to 0.6775 dollars from 0.6765 dollars.

The dollar bought 106.27 Japanese yen, lower than 106.62 Japanese yen of the previous session. The dollar decreased to 0.9782 Swiss francs from 0.9812 Swiss francs, and it was down to 1.3316 Canadian dollars from 1.3329 Canadian dollars.

The long-dated US Treasury notes saw their yields pull back on Tuesday, while the benchmark 3-month Treasury note yields rose to over 1.95 per cent, narrowing the gaps between long-term and short-term Treasury yields.

The benchmark 10-year Treasury yields fell to nearly 1.55 per cent on late Tuesday afternoon. The yields of 2-year note dropped to nearly 1.51 per cent. What's worse, the closely-watched 30-year Treasury yields decreased to a bit over 2 per cent.

The 10-year bill yields broke below the 2-year bill yields once at a point last week, which deepened worries that an inverted yield curve would incur an impending economic recession.