Dollar rebounds from losses sparked by Treasury buyback plan
The U.S. dollar rebounded on Thursday after sliding due to expectations of increased Treasury Department buybacks of long-term debt. Treasury Secretary Scott Bessent revealed the department would double the size of its buybacks to at least $4 billion per operation in an attempt to stabilize markets spooked by fiscal deficit concerns.
The move led to a sharp sell-off in the U.S. currency as traders worried the larger deficit would weaken the dollar. However, markets pushed back against the Treasury's latest move, with yields rising again. Treasury Secretary Bessent indicated he may increase the volume of Treasury bonds the government repurchases, claiming yields do not reflect underlying fundamentals.
The dollar index rose 0.06% to 98.89, while the euro fell 0.01% to $1.1676. The Japanese yen weakened 0.6% against the dollar to 159.12 per dollar.
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