Dollar Holds Ground Amid Fed Speculations and Treasury Yields Surge

The dollar's value remained stable as investors awaited President Trump's nomination to the Federal Reserve's Board amidst weak U.S. economic data. Treasury yields rose following a $58 billion auction, while concerns grew over potential political influence on Fed policy. Currency movements were cautious amid these developments.

In the international currency market, the dollar remained steady within its recent trading range on Wednesday. Investors are holding back ahead of President Donald Trump's announcement of his nominee for the Federal Reserve's Board of Governors, following weak U.S. economic data.

Treasury yields experienced an upward trend, influenced by a $58 billion auction for 3-year notes, with the 10-year note rising by 4.2 basis points to 4.238%. The prospect of President Trump filling a vacancy at the Fed has traders speculating on potential changes in monetary policy.

Concerns are also growing over possible political influence within the Federal Reserve, particularly after Trump dismissed the Bureau of Labor Statistics commissioner following an alarming jobs report. This development, coupled with the impact of tariffs, has left currency traders wary about future policy directions.

(With inputs from agencies.)