The dollar was down on Wednesday morning in Asia, with a retreat in U.S. Treasury yields sapped momentum from the U.S. currency’s recent rally and investors cautiously resumed bets on a continuous slide for the dollar. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.08% to 89.940. Benchmark 10-year Treasury yields fell nearly 7 basis points from a 10-month high seen on Tuesday, in turn snuffing out the dollar’s three-day rally and pushing it back towards multi-year lows. However, the greenback clung above those levels earlier in the session, with the rally tempering some investors’ confidence in the consensus view that U.S. trade and budget deficits will drive the dollar lower. The Democrat victory in Senate runoff elections in the state of Georgia earlier in the month sparked a bond-market selloff that drove U.S. yields sharply higher, in turn stalling the dollar’s decline. The victory also raised hopes for huge sums of government borrowing to fund the big stimulus measures promised by President-elect Joe Biden when he and his administration take office on Jan. 20. However, the strong demand seen at a $38 billion 10-year auction overnight and comments from Federal Reserve officials reiterating that monetary policy is going to stay supportive could see the dollar back on a downward slide. Investors now await U.S. inflation figures for December, with the Consumer Price Index to be released later in the day. Further data, including the Producer Price Index, core retail sales and industrial production, are due on Friday.