The dollar was weaker against a basket of currencies yesterday due to increasing expectations for interest rates hikes from both the Federal Reserve and the Bank of England. This expectation has caused government bond yields to rise and has reduced the dollar’s safe-haven appeal.
Weak economic data from the US has also caused the dollar to weaken. Data yesterday showed that building permits and housing starts are both falling, which came on top of industrial production data on Monday that showing that factories are struggling with supply chain issues.
There will be more economic data releases today for the US, including mortgage figures and crude oil figures.
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