The dollar fell to around 106.3 on Thursday, retreating sharply from one-month highs and tracking a decline in Treasury yields, with the benchmark 10-year US yield dropping to a two-week low toward 4.7%. Those moves came as the Federal Reserve held interest rates steady for the second time, as widely expected but noticed that the recent increase in yields has had a tightening impact on financial conditions, and hinted it is done with rate hikes. On the data front, the JOLTS report showed that job openings were higher than expected, adding to evidence of strong labor conditions. Investors now look ahead to the monthly jobs report on Friday for further guidance. The dollar weakened across the board, with the most pronounced selling activity against the Australian and New Zealand dollars.
