The dollar index rose to a new 10-week high amid greenback buying in the run up to U.S. elections and favorable investor sentiment after upbeat bank earnings, while investors also geared up for U.S data on Thursday including retail sales.
The euro fell to a two-month low, sliding below its 200-day moving average ahead of an expected rate cut by the European Central Bank Thursday.
New EU rules further restrict Germany's fiscal space for its budgets, two finance ministry sources said on Wednesday.
The pound slipped below 1.30 as soft UK CPI readings fueled speculation about a faster pace of Bank of England cuts.
The Australian dollar slid ahead of the country's September employment report.
Treasury yields were down 2 to 3 basis points across tenors.
The 2s-10s curve was little changed at +8.1bp.
The S&P 500 rose 0.47% amid gains in bank shares and small caps.
Oil fell 0.11% amid concerns about weak demand.
Gold rose 0.52% on lower Treasury yields.
Copper edged up 0.41% on hopes that China will reveal more support for its ailing property sector.
Heading toward the close: EUR/USD -0.33%, USD/JPY +0.38%, GBP/USD -0.67%, AUD/USD -0.58%, DXY +0.31%, EUR/JPY +0.07%, GBP/JPY -0.28%, AUD/JPY -0.23%.
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