Dollar Hits Three-Month Low as Treasury Buyback Worries Mount
The US dollar fell to a three-month low against the euro on Friday due to concerns that the US Treasury's plan to expand buybacks of longer-dated government debt could weigh further on the currency.
Treasury Secretary Scott Bessent said he may increase the government's repurchases of Treasuries, 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.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.01% to 98.80, but the euro was up 0.03% at $1.1682.