Dollar Dives as Treasury Doubles Down on Bond Buybacks

The US dollar has plummeted to a three-month low after the Treasury Department announced a surprise expansion of its bond repurchasing plans.

The government will double its long-term bond buyback program, spending at least $4 billion per operation to purchase older debt and inject cash into the financial system.

This move aims to lower surging bond yields, which have risen to nearly two decades high, making borrowing costs more expensive for businesses and consumers.

However, this aggressive market intervention has weakened the global appeal of the American dollar, causing it to drop against major currencies like the euro.