Dollar hits 3-month low vs euro, pares losses after Treasury move
The U.S. dollar experienced a decline against the euro on Thursday, following a move by the Treasury Department to increase its buyback of 10- to 30-year debt to $4 billion per operation. The Treasury's announcement aimed to stabilize a market shaken by worries about the increasing U.S. fiscal deficit. The dollar index rose 0.06%, reaching 98.89, while the euro fell 0.01% to $1.1676.
The Treasury's intervention was seen as an attempt to counteract concerns about fiscal policy sustainability and the Federal Reserve's credibility. Market participants were uncertain about the credibility of the Treasury's actions, and some market players anticipated additional announcements in the future. The Federal Reserve's upcoming speech from Chairman Kevin Warsh at the Jackson Hole symposium was also a point of focus for traders, as they awaited insights on how the central bank might address persistent inflation. Bitcoin gained 5% to reach $72,524.54, marking its highest level since June 1.
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- Tension in US debt: Treasury announces it will double bond buybacks and manages to lower long-term yields thecorner.eu
- British Pound: Sustained break above 1.3650 may open 1.41 – Scotiabank fxstreet.com
- Treasury buybacks could set up Bitcoin’s next move toward $180,000, says strategist coindesk.com
- Gold reclaims momentum as US Treasury move sparks bullion rush, gains 2% in a day thehindubusinessline.com
- The biggest loser from the Treasury’s latest buyback plan: The U.S. dollar. Here’s why. marketwatch.com
- US dollar falls to three-month low as Treasury moves to soothe bond jitters straitstimes.com
- Dollar hits 3-month low vs euro, pares losses after Treasury move finance.yahoo.com
