As the British Pound and New Zealand Dollar advanced on Tuesday, the Dollar plunged on bond stabilization.

The dollar fell on Tuesday as the rapid rise in yields of the US Treasury and other currencies, including the British pound, came to a halt. The greenback hit its highest level in a year against a basket of other currencies last week, on soaring Treasury yields and investors betting that the Federal Reserve might be forced to raise its bonds. rate to combat stubbornly high inflation. The Dollar Index against a basket of other currencies was down 0.27% on the day at 93.67, having earlier fallen to 93.50, its lowest level since September 28.

The euro gained 0.29% to $1.1644. The pound jumped 0.60% to $1.3810 as money markets forecast a cumulative 35 basis points of rate hikes by the end of the year. The New Zealand dollar gained 0.95% to $0.7152 after data on Monday showed the fastest consumer price inflation in more than a decade. The offshore yuan strengthened to 6.3788 per dollar, the strongest since June 10.