The shared currency was pressured lower Wednesday by the prospect of more easing measures from the European Central Bank.
Meanwhile, the dollar rose driven by higher U.S. Treasury yields which climbed on
expectations that the Federal Reserve will increase interest rates in
December.
U.S. government bond yields rose to their peak in nearly seven weeks on Tuesday as investors have been getting rid of their bond holdings after the Fed’s signal a week ago that a rate increase before the end of this year remains on the table.
The benchmark 10-year U.S. government bond yield rose to 2.219% on Tuesday in New York, its highest closing level since Sept. 16.
Some market players said year-end demand for the dollar may also be helping the U.S. currency.
Meanwhile, the euro has been weighed on by the possibility of more easing by European Central Bank.
ECB President Mario Draghi on Tuesday reiterated the central bank was ready to take more accommodative action. The euro has been under pressure in the past few sessions after he hinted more easing in late October.
The euro fell to $1.0934 from $1.0963 late Tuesday in New York.
The euro was lower against the pound with EUR/GBP last seen at 0.7091, down 0.27%.
The dollar was last at ¥121.10 from ¥121.05.
The market’s immediate focus is on Fed Chairwoman Janet Yellen’s testimony before a U.S. House committee as investors look to her stance on monetary policy going forward.
