Muscat: The US dollar index fell today, while the yen gained momentum against the dollar, largely shrugging off weaker-than-expected Japanese GDP as traders reined in expectations the Federal Reserve could raise interest rates this year.

According to Oman News Agency, the yen was 0.2% stronger against the US dollar at 159.075 yen, marking a second consecutive day of modest gains. This comes after data revealed that Japanese GDP for the second quarter expanded at an annualized rate of 1.1%. In the bond market, Japan's 10-year government bond yield surged to a three-decade high. Meanwhile, the euro experienced a 0.1% increase to $1.1585, hitting a two-month high, and the British pound rose by 0.1% to $1.3551, nearing its strongest levels since May.

The Australian dollar also saw an uptick, climbing 0.3% to $0.7101, while the New Zealand dollar advanced 0.4% to $0.5911, both reaching their highest levels since June. The dollar index, which measures the greenback's strength against a basket of six currencies, fell by 0.1%, trading close to its lowest levels of the month at 99.501. In offshore trade, the US dollar remained flat against the Chinese yuan at 6.7412 yuan, as market participants awaited the release of upcoming activity data.