Dollar Plunges on Treasury Buybacks as Fed Looms

The US Treasury's plan to double its long-term bond buybacks from $2 billion to at least $4 billion per operation has sparked a sharp selloff in the dollar, with the greenback hitting a three-month low against the euro.

However, markets pushed back against the Treasury's latest move on Thursday, with yields renewing their climb. Sarah Ying, head of FX strategy at CIBC Capital Markets, said 'This is (Treasury Secretary Scott) Bessent testing the market and the market fighting back.'

The dollar index rose 0.06% to 98.89, with the euro down 0.01% at $1.1676. The single currency had earlier reached $1.171, the highest since May 14.