Dollar falls on Fed rate bets, but yields rise

Tuesday, 18 August 2026 11:22 - - {{hitsCtrl.values.hits}}

NEW YORK: US. stocks were mixed on Monday and the dollar fell to its lowest level since June, after a run of soft U.S. economic data, including an unexpected drop ‌in retail sales, led markets to scale back bets on an imminent Fed rate move, Reuters reported.

It said 30-year Treasury yields, meanwhile, climbed to their highest level since 2007, as concerns over the U.S. fiscal trajectory combined with heavy AI-related corporate debt issuance to push yields higher.

The S&P 500, fell 0.11% while a strong revenue forecast from AI lab Anthropic gave the Nasdaq Composite, a 0.08% lift. The Dow Jones Industrial Average fell 0.21%.

MSCI’s gauge of stocks across the globe was flat on the day, while the pan-European STOXX 600 Index fell 0.06%.

Concerns over the payoff from AI investment have battered chip stocks in recent weeks, but ⁠robust quarterly results and upbeat forecasts pointing to resilient demand have pushed the tech-heavy Nasdaq back toward record territory.

Reuters also said the dollar slipped as traders pushed back their expectations for the Fed’s next move. Benign consumer and producer price inflation data for July, released last week, boosted hopes that the worst of the price pressures may be behind us — even as uncertainty over the Iran conflict lingers.

The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.17% to 99.42, with the euro up 0.22% at $1.1595.