Dollar Dives as Treasury Buyback Plans Weigh on Currency

The US dollar fell to a three-month low against the euro on Friday due to concerns about the Treasury's plan to expand buybacks of longer-dated government debt.

Treasury Secretary Scott Bessent said he may increase the government's repurchases of Treasuries further, after pledging to at least double the size of its buybacks of longer-dated debt 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.