Singapore, Nov. 2 (BNA): The dollar fell broadly on Thursday, tracking a slide in U.S. Treasury yields as markets grew more convinced the Federal Reserve was done with its aggressive monetary policy tightening cycle after it left rates unchanged.
The Fed held interest rates steady on Wednesday, as widely expected, as policymakers struggled to determine whether financial conditions may be sufficiently tight to control inflation, Reuters reported.
However, Fed Chair Jerome Powell acknowledged that a recent market-driven rise in Treasury bond yields, home mortgage rates, and other financing costs could have their own impact on the economy as long as they persist.
The decision lifted sentiment on Wall Street, which spilled over into Asia, giving a small boost to the risk-sensitive Australian and New Zealand dollars.
The Aussie rose 0.5% to a three-week high of $0.6426, while the Kiwi similarly jumped more than 0.5% to hit a two-week top of $0.58825.
The dollar edged broadly lower alongside U.S. Treasury yields, which touched multi-week lows in early Asia trade.
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