Forex
Dollar Crumbles Under Treasury Buyback Pressure
The US dollar suffered its sharpest decline in three weeks following increased Treasury buybacks that drove long-end yields lower.
The move, which saw DXY break support and USD/JPY turn lower again, has traders wondering whether the dollar's decline has further to run.
The US Treasury stepped in to support the flailing bond market by doubling planned buyback sizes for 10-30 year debt to at least $4 billion per operation.
This increase is set to run through early November, but the final line of the statement hints it may be extended or increased further.