Forex Today: US Dollar sinks on Treasury buyback ahead of data-heavy Thursday

The US Dollar Index (DXY) experienced a broad sell-off on Wednesday, dropping below the 99.00s region and remaining well under 100.00. This decline was primarily driven by the United States Treasury's plan to double the size of its liquidity support buyback operations for longer-dated coupon securities, set to begin on September 9.

Despite the Federal Open Market Committee's (FOMC) July minutes not significantly impacting the decline, traders regarded the document as backward-looking due to the softer inflation and weak jobs data released since the meeting. The US Dollar emerged as the strongest against the Australian Dollar, while the Euro continued its upward trend, reaching its highest level since late May as the Dollar retreated.

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