Dollar fell in European trade to two-week lows against a basket of major rivals, sharpening losses for the second day, as US treasury yields tumble.
US 10-year treasury yields continued their extreme tumble amid doubts about recovery in the US economy in the third quarter following weak US manufacturing data.
The Index
The dollar index fell 0.5% to 110.59, the lowest since September 22, after closing down 0.5% yesterday, the third loss in the last four days, following weak US manufacturing data.
US Treasury Yields
US 10-year treasury yields fell 2.2% today for the second straight session, hitting two-week lows at 3.564% and boosting non-yielding assets like silver.
US ISM manufacturing PMI tumbled to 2-1/5 year lows in September, triggering concerns about the health of the economy in the third quarter.
The data cut chances of a 0.75% rate hike by the Federal Reserve at the November meeting from 62.5% to 55%.
Estimates
We expect here for the dollar index to keep moving downwards, potentially giving up 111 and heading for the more important barrier at 110.