US dollar hovers near three-week lows

Declining US Treasury yields and expectations surrounding the Federal Reserve's (Fed) monetary policy weighed on the dollar, while investors assessed geopolitical developments in the Middle East and movements in energy prices.

Market attention is focused on the Fed's interest rate decision scheduled for October 28. With expectations increasingly favoring unchanged interest rates, the central bank's statements on inflation and economic growth are expected to play a key role in determining the dollar's direction.