Euro and pound probe multi-month highs while Yen hovers near 160 zone
The U.S. dollar experienced a significant drop on Wednesday, reaching a three-month low. This decline occurred as the Treasury Department announced it would double its buyback operations for long-dated bonds, starting September 9. The 30-year yield dropped 7.2 basis points to 5.213%, down from its previous high of 5.337% after the Fed's July interest rate decision.
This move aimed to provide greater liquidity support in longer-dated nominal sectors, where there was strong market sponsorship. Despite the dollar's weakness, the Japanese yen and pound sterling strengthened against it, with the USD/JPY pair falling to 158.21 and the EUR/USD pair rising to $1.1674. The euro reached a three-month high, while the pound sterling touched its highest level since May 11.
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