The US dollar has slid lower and continues to trade weak a day after the Fed jolted markets with a surprising 0.50% rate cut on Tuesday, to offset possible economic damage from the coronavirus outbreak. At the time of writing, the US dollar index is trading at around 97.24.

US Treasury yields also crashed below 1% for the first time ever after the emergency rate cut decision by the Federal Reserve, with the 10-year Treasury yield declining to the lowest level ever seen at 0.906%. Meanwhile, the yield on the 30-year US Treasury bonds slipped to 1.601%.

According to Fed chairman Powell, the US central bank anticipates risks to the US economy from the rapidly spreading coronavirus and undertook this move to support employment and maintain price stability in the US markets. The move heightened the risk-off sentiment in global markets, sending US equities lower and increasing the demand for safer instruments like bonds.