Dollar Plunges to Three-Month Low Amid Treasury Market Intervention

The U.S. dollar has retreated to a three-month low after the Treasury Department's efforts to control bond market yields. The dollar index, which tracks its value against six major currencies, fell to 98.558, its lowest point since May 14.

The euro climbed to its highest level since mid-May at $1.1710 as investors reacted positively to the Treasury's strategy of buying back longer-dated securities.

ING's global head of markets, Chris Turner, stated that this market intervention may ease fears of market disruption but has potential negative implications for the dollar.