22.11.201703:32:00UTC+00Dollar on the Back Foot, Capped by Sliding Long-Term U.S. Yields

The dollar was mostly lower against major peers on Wednesday, as U.S. Treasury yields failed to increase despite growing investor risk appetite in broader financial markets.

The dollar index against a basket of six major currencies was slightly lower at 93.82.

The index retreated from a one-week peak of 94.165 overnight after a rally triggered earlier this week by a declining euro stalled as long-term U.S. Treasury yields continued to move lower.

The U.S. Treasury yield curve has flattened to its lowest in a decade as weak inflation and appetite for yield have supported longer-dated debt. Benchmark 10-year note yields have moved lower to 2.35 percent.

The greenback was slightly lower at 112.16 yen, after dropping overnight from a peak of 112.705.

The Australian dollar fell to $0.7562, near a five-month low of $0.7532 notched on Tuesday, as the Aussie's attraction as a carry trade was impaired by higher short-term U.S. yields.

The euro was steady at $1.1744, pulling back from a recent one-month high of $1.1860.