The US dollar extends its decline as Treasury yields remain elevated, even with Q3 GDP estimates raised to 2.5%.
The US dollar has continued its recent decline, despite upgraded forecasts for third-quarter GDP growth to 2.5% annualized from 2.0%. Persistent softness in the currency contrasts with stronger economic expectations, signaling potential market shifts.
Elevated fiscal deficits and high long-end Treasury yields are cited as key factors weighing on the dollar. Analysts note that while growth projections improve, the currency’s momentum remains subdued, reflecting broader macroeconomic pressures.
The divergence between stronger GDP estimates and dollar weakness highlights investor caution amid ongoing fiscal and monetary policy uncertainties.