Dollar Dips Amid Treasury Debt Buyback Strategy and Geopolitical Concerns

The US dollar has declined to near a three-month low against the euro due to concerns over the Treasury's strategy for buying back long-term government debt.

Treasury Secretary Scott Bessent announced that the department may increase its repurchases, which was seen as a surprise after they had pledged to double buybacks previously.

This move has led to an increase in yields on longer-dated debts, causing worries about fiscal deterioration and geopolitical tensions, particularly with regards to the Iran conflict.