Dollar Crumbles as US Treasury Buyback Plan Fails to Deliver

The US dollar hit a three-month low against the euro as concerns mounted that the Treasury's plan to expand buybacks of longer-dated government debt could weigh further on the currency.

Treasury Secretary Scott Bessent said he may increase the government's repurchases of Treasuries, which has already been increased by at least double in an effort to rein in bond yields. Long-dated yields jumped this week, with the 30-year yield reaching its highest level since 2007.

Analysts say that holding yields down will simply shift the burden of fiscal concerns onto the currency. Marc Chandler, chief market strategist at Bannockburn Global Forex, said 'The market is pushing back.'

The dollar index rose 0.01% to 98.80, with the euro up 0.03% at $1.1682.