The US Dollar Index, which gauges the USD against other major currencies, continues to decline for the second consecutive session as it hovers around 104.10 during the Asian trading hours. This downturn comes despite efforts by Federal Reserve Chair Jerome Powell to manage expectations of a potential rate cut in March and emphasize the importance of monitoring inflation as it nears the 2% target.

Powell’s remarks failed to counteract the impact of subdued US bond yields, which are currently affecting the greenback’s performance. The 2-year and 10-year yields on US Treasury notes stand at 4.39% and 4.02%, respectively, adding pressure on the US Dollar despite the Fed’s cautious stance on monetary policy.

Additionally, comments from Federal Reserve Bank of Cleveland President Loretta Mester hinting at potential interest rate cuts later in the year further contribute to the uncertainty surrounding the USD’s trajectory.