Dollar Index Hovers Near Three-Month Low Ahead of Key Events
The US Dollar Index has been hovering near its three-month low as markets focus on key events this week, including Treasury Secretary Scott Bessent's press conference and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium.
In early Tokyo trading on Monday, the index edged up 0.05% to 98.854, but currency traders remain concerned about U.S. fiscal and debt sustainability, as well as worries over dollar depreciation triggered by the Treasury's expanded buyback of long-dated bonds.
The US Dollar Index hit its lowest level since May 14 at 98.557 on August 20, after the 30-year Treasury yield approached a two-decade high last week and the Treasury Department announced it would double the size of its long-dated bond buybacks to $4 billion per operation.
Shane Oliver, head of investment strategy at AMP, noted that 'The U.S. Treasury's attempt to artificially suppress long-dated bond yields appears to be reigniting the dollar depreciation trade.'