Dollar Dips Amid Treasury Selloff and Middle East Tensions

The U.S. dollar weakened against major currencies as Treasury selloff eased, while investors awaited Federal Reserve meeting minutes for guidance. The euro and yen gained, and U.S. Treasury yields dipped. Middle East tensions and inflation risks influenced market sentiment, with a focus on oil prices and the Fed's rate outlook.

The U.S. dollar slipped against major currencies on Wednesday following an easing in the Treasury selloff. Investors looked to minutes from the Federal Reserve's latest policy meeting for fresh guidance amidst renewed Middle East tensions.

Markets, left hungry for catalysts by a sparse data calendar, anticipated the minutes to provide a comprehensive read on policymakers' thinking. With Fed Chair Kevin Warsh reticent on the rate outlook, the euro rose 0.31% to $1.1611, while the yen strengthened 0.35% against the dollar.

Meanwhile, a stalemate in the Middle East pushed oil prices to three-week highs, maintaining inflation risks. President Donald Trump confirmed no talks with Iran, stating the Strait of Hormuz was open despite Iranian claims it was shut.