Dollar Dives as Treasury Yields Climb

The US dollar has fallen to a three-month low against the euro as concerns grow that the Treasury's efforts to suppress bond yields could be detrimental to the currency.

On Thursday, Treasury Secretary Scott Bessent said he may increase the government's repurchases of longer-dated debt even further, following an announcement to at least double the size of buybacks in an effort to rein in bond yields.

Bond yields have risen sharply 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.

The dollar index fell 0.05% to 98.79, while the euro reached a high of $1.1711, its highest value since May 14.