Dollar Plunges as Treasury Intervenes in Bond Market Chaos

The US dollar has fallen to a three-month low due to a recent move by the Treasury Department aimed at soothing bond market jitters. The department's plan to increase buybacks of Treasury securities with maturities between 10 and 30 years is expected to reassure markets that longer-dated bonds will not face a disorderly selloff.

ING global head of markets Chris Turner stated, 'It reduces one of those left-field risks out there which is good for risk, good for the investment environment and slightly dollar negative.'

The move comes as investors have been grappling with a sharp selloff in the global bond market due to concerns about soaring government debt and higher oil prices.