Dollar Dips as US Treasury Moves Spark Market Jitters

The US dollar slipped to a lower note on Friday, ending a volatile week, as investors became increasingly uncertain about the impact of US Treasury interventions in the bond market. This unease lifted the euro by 0.13% to $1.1694, marking its fourth straight weekly gain, while the British pound increased by 0.15% to $1.3652.

US Treasury Secretary Scott Bessent hinted at further increases in Treasury buybacks, a move that stirred market nerves about the dollar's future. According to Jonas Goltermann, chief markets economist at Capital Economics, financial repression could hinder the dollar's rebound.

The Federal Reserve's Jackson Hole symposium next week will be pivotal, with Chair Kevin Warsh's address expected to shed light on financial policy perspectives. Meanwhile, the Japanese yen firmed by 0.14% as inflation data suggested potential rate hikes by the Bank of Japan, following last month's joint intervention by US and Japanese authorities.