Dollar slips near multi-month lows as US Treasury yields fall

The US dollar slipped near its lowest levels in several months against a basket of major currencies on Tuesday, as US Treasury yields retreated from recent highs and investors awaited the outcome of the latest Federal Reserve meeting for signals on interest rate direction.

The euro inched up to $1.1577, staying close to its two-month peak reached earlier this week, while the British pound held steady at $1.3533, near a three-month high, ahead of UK inflation data due later today.

The Japanese yen was steady at 159.56 per dollar, having given up much of its gains following recent government intervention, but remained well above its multi-decade low of around 164 yen to the dollar.

The dollar index, which tracks the greenback against six major peers, edged down slightly to 99.65.

Benchmark 10-year US Treasury yields fell to 4.702%, while 30-year yields dropped to 5.282%.

Market focus is now on the outcome of the latest Federal Open Market Committee meeting, which sets US monetary policy, with results expected later today as investors look for clues on the future path of interest rates.