The U.S. dollar, as measured by the DXY index, plunged to its weakest point in five months on Wednesday (DXY: -0.55% to 100.98), pressured by a substantial drop in Treasury rates, with the 2-year yield sinking below 4.26%, its lowest level since late May.
While market moves were likely amplified by thin liquidity conditions, characteristic of this time of year, wagers that the Federal Reserve will cut rates materially in 2024 have been the primary bearish driver for the greenback in recent weeks.
