Dollar Index Falls to 3-Year Low
The dollar fell to a three-year low against a basket of major currencies on Wednesday on growing concerns that the yield advantage on the US currency will begin to decline as major central banks move towards abandoning their massive stimulus policies.
The dollar index, which measures the strength of the greenback versus a basket of six major currencies, slipped below the 90.00 barrier for the first time since December 2014. The latest trade fell 0.2 percent to 89.935.
The dollar fell broadly, with the euro hitting a new high in three years, while the pound rose to its highest level since the British vote in June 2016 for the exit from the European Union.
Against the yen, the dollar fell below 110 yen for the first time in four months.
The yen has gained support in recent weeks after the Bank of Japan cut its purchases of long-term government bonds earlier this month, raising speculation of a final exit from its huge monetary stimulus.
The dollar fell to around 109.80 yen, its lowest level since Sept. 15. The dollar traded in the latest trading session at 109.92 yen, down 0.3 percent from the previous day.
The euro rose to $ 1.2335, its strongest level since December 2014, and rose at a recent high of 0.2 percent to $ 1.2318.
Sterling gained 0.2 percent to $ 1.4023. Sterling touched earlier at $ 1.4049.
The British currency has risen recently amid growing optimism about Britain's chances to conclude a favorable agreement to exit the European Union.