Forex
Dollar Rebounds as Treasury Doubles Bond Buyback Program
The US dollar rebounded from four-month lows overnight, as markets digested the impact of this week's bond market actions from the US Treasury.
US Treasury Secretary Scott Bessent announced a doubling of the government's weekly bond buyback program, expanding the weekly cap from $2 billion to $4 billion. This move was taken after long-term bond yields hit their highest level since 2007, driven by concerns about government spending, the war with Iran, and higher inflation.
The stronger US dollar saw most other FX markets move lower. The Australian dollar (AUD/USD) fell 0.2%, weighed down by yesterday's disappointing jobs numbers, while the New Zealand dollar (NZD/USD) bucked the trend, gaining 0.1%.