Dollar wobbles as investors balk at US Treasury's rescue efforts

The US dollar experienced a shaky week on Friday as investors questioned the effectiveness of the Treasury Department's attempt to buy back bonds. Secretary Scott Bessent had expressed the possibility of increasing these repurchases earlier in the week, but the efforts failed to halt the declines. The Treasury's actions were viewed as a temporary measure to address rising yields, while concerns about the administration's interventionist approach and fiscal situation intensified.

Against a weaker dollar, the euro and the British pound saw gains, with the euro nearing a three-month high and the pound flirting with a six-month peak. Meanwhile, other currencies like the Australian dollar, New Zealand dollar, and Japanese yen showed positive movement. Some analysts warned that the Treasury's bond buybacks might not be sufficient to boost investor confidence, as broader fiscal and debt concerns loomed.

In contrast, alternative assets like gold and bitcoin benefited from the negative sentiment, with the latter reaching a two-and-a-half-year high.