Dollar Crumbles as Treasury Intervenes in Bond Market Rout

The US dollar weakened to three-month lows on Thursday after the Treasury Department intervened in the bond market, seeking to calm a sharp selloff that had pushed long-end yields to their highest since 2007.

The dollar index stood at 98.854, its lowest level since mid-May, while the euro rose to $1.1674, reaching its highest point since late May.

Investors have been grappling with a global bond market rout driven by concerns over soaring government debt and higher oil prices due to the ongoing US-Israeli war on Iran.

Prashant Newnaha, senior rates strategist at TD Securities, noted that the Treasury's move was not quantitative easing but rather a signal that it 'blinked' in response to market pressure.