Dollar Holds Near Three-Month Lows Amid US Debt, Iran Risks

The US dollar remains near its lowest levels in over three months as investors weigh the impact of U.S. Treasury bond buyback plans against renewed trade and geopolitical risks.

The US Dollar Index ticked up 0.1% to 98.88, hovering near its lowest since mid-May.

The U.S. Treasury said it would at least double the size of its long-end Treasury buybacks to $4 billion per operation, seeking to improve liquidity and contain pressure on long-term yields.

Investors worry that heavy borrowing needs will require the market to absorb large amounts of Treasury supply, keeping upward pressure on long-term yields and raising the government’s interest costs.