{
  "id": 6723979,
  "title": "Dollar Recovers on Smaller Treasury Buyback and Higher T-Note Yields",
  "url": "https://urgent.news/2026/09/09/dollar-recovers-on-smaller-treasury-buyback-and-higher-t-note-yields",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-09T19:40:38.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/currencies/articles/dollar-recovers-smaller-treasury-buyback-194038439.html"
  },
  "original_language": "en",
  "account": "On Wednesday, the dollar index (DXY00) rebounded from a 2.5-week low and concluded the trading day up by +0.06%. The stronger dollar was supported by a surge in WTI crude oil prices, increasing by 3% to a 3.25-month high, which elevated inflation expectations and may have encouraged the Federal Reserve to tighten monetary policy. Short covering also played a role, as traders exited positions in the dollar following the US Treasury's announcement of purchasing $6 billion of long-term US government debt securities on Thursday, slightly below expectations of $10 billion. Additionally, the 10-year T-note yield reached a 2.75-year high of 4.85%, strengthening the dollar's interest rate differentials. Initially, the dollar slipped on Wednesday, as the yen strengthened amid US Treasury Secretary Bessent's challenge to traders to test his resolve in supporting the yen. The markets are projecting a 61% probability of a +25 basis point rate hike at the upcoming FOMC meeting on September 15-16. The euro (EUR/USD) gained from expectations of a 25 basis point ECB rate increase at Thursday's policy meeting, reaching a 1.5-week high. However, gains were capped by crude oil's rally to a 3.25-month high, negatively impacting the eurozone economy and the euro. French July manufacturing production came in weaker than anticipated, further weighing on the euro. USD/JPY declined by -0.19% on Wednesday, as the yen strengthened and neared Tuesday's 6.5-month high against the dollar. US Treasury Secretary Bessent's comments bolstered the yen, suggesting potential US intervention in the forex market with Japan at any time. Meanwhile, hawkish statements from Bessent hinted at a possible US intervention with Japan to support the yen. Japan's machine tool orders surged by 64.7% year-over-year, the highest increase in 4.75 years. Speculation exists that Japan's Government Pension Investment Fund (GPIF) may adjust its asset allocation, potentially supporting the yen. The BOJ's policy meeting on September 18 is expected to see a 98% chance of a +25 basis point rate hike, with the government favoring a rate hike to bolster the yen and curb inflationary pressures stemming from a weak yen. Precious metals, including December COMEX gold and silver, rose on Wednesday, driven by a decline in the dollar index to a 2.5-week low and concerns over dollar debasement. However, higher global bond yields and a rally in crude oil prices, which boosted inflation expectations, acted as headwinds for precious metals.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}