Dollar Dives as Treasury Steps In to Calm Turbulent Bond Market

The US dollar experienced a significant drop, reaching its lowest point in three months due to recent Treasury Department actions. The department's intervention aimed to stabilize a volatile bond market by doubling liquidity support buyback operations for longer-term bonds.

This move is expected to reduce pressure on long-dated debt and influence monetary policy. As a result, the dollar index dropped to 98.854, its lowest level since mid-May.

The surge in the 30-year Treasury yield contributed to concerns over growing government debt and potential oil price hikes due to unresolved tensions between the US, Israel, and Iran.