Dollar softens as bond market steadies ahead of Fed minutes

BusinessInternationalDollar softens as bond market steadies ahead of Fed minutesBy Reuters -Aug 19, 2026Add ARY News on GoogleAAResizeThe U.S. dollar slipped against major peers on Wednesday as a ​selloff in Treasuries eased, with investors counting on minutes from the Federal Reserve’s latest policy meeting to ‌offer fresh guidance later in the day. A light data calendar this week has left markets hungry for catalysts, potentially putting greater emphasis on the minutes. The document is expected to offer a comprehensive read on policymakers’ thinking at a time when Fed Chair Kevin Warsh has been reticent on the rate ​outlook and renewed Middle East tensions are adding to the unease. The euro rose 0.31% to $1.1611, remaining close to the two-month high ​touched earlier this week. Sterling was 0.22% higher at $1.3562 after data showed UK inflation in July rose ⁠in line with expectations. The Japanese yen also strengthened 0.35% to 159.04 per dollar, pulling away from the closely watched 160 level after ​giving back much of its intervention gains. “Japan is struggling with structural problems. But I think the central banks have a strong incentive ​to keep the yen orderly,” Tom Samuelson, chief investment officer at Vineyard Global Advisors, said. The dollar index , which measures the U.S. currency against six major peers, was down 0.29% at 99.36. A selloff in U.S. Treasuries appeared to be easing. The yield on the benchmark U.S. 10-year Treasury note declined to ​4.696%, while that on the 30-year bond dipped to 5.283% after hitting its highest level in nearly 20 years. But some cautioned ​against complacency, warning that yields were still elevated and an increase could reverberate across stocks, bonds and currency markets. Samuelson said a 4.8%-5% 10-year ‌Treasury yield ⁠would mark the “warning track.” “If we push through 4.8% to 5% on the 10-year Treasury, it can cause jitters and compress valuations of high-flying technology stocks,” he added. The Fed minutes are...