Dollar Index Extends Slide as Treasury Holds Steady on Debt Issuance

The U.S. Dollar Index (DXY) fell to 99.676 on Wednesday after breaching the 100 threshold in New York trading, extending its weekly decline against a basket of major currencies.

The main trading themes centered on the U.S. Treasury Department's decision to maintain its debt issuance guidance and investors' reassessment of the Federal Reserve's future rate hike path.

Treasury yields moved lower after the U.S. Treasury Department decided to keep its bond issuance guidance unchanged, suggesting that auction sizes for medium- and long-term Treasuries will not be adjusted for a considerable period extending into 2027.

This decision alleviated market concerns about a sudden surge in the supply of longer-dated U.S. government bonds.