Dollar hits yet another new low against euro
Greenback also declines against yen while bonds edge down slightly ahead of oil stocks report.
NEW YORK (CNNMoney.com) -- The dollar Wednesday hit a new low against the euro as it declined against an array of currencies, and the 10-year benchmark yield dipped below the 5 percent mark before rising again.
The euro bought $1.376 up from $1.372 Tuesday, while the dollar bought ¥121.62 down from ¥122.14.
The dollar's decline is driven by concerns about subprime, said Ashraf Laidi, chief forex exchange analyst at CMC Markets.
Subprime woes were sold as just impacting the housing market, Laidi said, but they "seem to be a pandora's box for hedges funds and banks."
"No one knew the right value of them until yesterday," said Laidi.
Standard and Poor's Rating Services said Tuesday it was putting 612 securities backed by subprime mortgages on "CreditWatch negative" and that it expected the majority to soon be downgraded because of high delinquency and foreclosure rates.
In Treasurys, the 10-year benchmark note lost 1/32, or 31 cents on a $1,000 note, to yield 5.03 percent, after briefly falling below 5 percent in the morning. Tuesday, the 10-year yield was 5.06. The 30-year bond lost 4/32, or $1.25 on a $1,000 bond, to yield 5.135 percent down from 5.14 percent. Bond prices and yields move in opposite directions.
The 5-year note was unchanged, yielding 4.929 percent, while the 2-year was also unchanged at 4.85 percent.
Crude inventories, expected to be flush, will be announced at 10:30 am ET.
The report will come one day after Federal Reserve Chairman Ben Bernanke said swings in volatile energy and food prices will have minimal impact on inflation as long as inflation expectations are held steady.