Dollar Plummets to Three-Month Low Amid Treasury Buyback Concerns

The US dollar plummeted to its lowest level against the euro in three months due to concerns over the Treasury's plan to expand buybacks of longer-dated government debt. This move is aimed at holding down bond yields, but analysts warn it will merely shift the burden of fiscal concerns onto the currency.

Treasury Secretary Scott Bessent hinted that he may increase repurchases of Treasuries further, a day after the department announced plans to double its buybacks of longer-dated debt. This move has had little effect on bond yields, which have continued to rise, with the 30-year yield reaching its highest level since 2007.

'Bessent’s efforts to suppress U.S. yields haven't done much for U.S. yields, but it's undermined the dollar,' said Marc Chandler, chief market strategist at Bannockburn Global Forex. 'The market is pushing back.'