On Thursday, The U.S. dollar sank to a new four-week low versus major peers as Treasury yields pulled back from last month’s surge, with investors increasingly convinced by the Federal Reserve’s arguments that interest rates will stay low for some time.
The Russian ruble sank more than 1% to 76.65 per dollar on reports the U.S. will announce sanctions on Russia as soon as Thursday for alleged election interference and malicious cyber activity.
The dollar index, which tracks the greenback against six rival currencies, dipped to the lowest since March 18 at 91.559 in the Asian session before recovering to be basically flat at 91.666.
The euro rose as high as a four-week top of $1.1989, matching the highest level since March 4, before trading mostly unchanged at $1.19735.
The dollar changed hands at 108.87 yen, after hitting a three-week low of 108.755 on Wednesday.
“The dollar has been losing steam a bit in line with falls in U.S. bond yields as the Fed has maintained its dovish stance,” said Yujiro Goto, chief currency strategist at Nomura Securities.