Dollar Sinks on Treasury Plan, EUR and GBP Soar

The US Dollar Index (DXY) declined on Wednesday, falling below the 99.00s region and staying under 100.00, due to the United States Treasury's plan to at least double the size of its liquidity support buyback operations for longer-dated coupon securities, effective September 9.

The July Federal Open Market Committee (FOMC) Minutes also had little impact on the decline, as policymakers still viewed inflation as elevated and confirmed three officials voted for a rate hike. However, traders saw the document as backward-looking, given softer inflation and weak jobs data released since the meeting.

EUR/USD extended its advance beyond 1.1675 to reach its highest level since late May, while GBP/USD climbed past the 1.3600 mark to a three-month peak due to firm United Kingdom (UK) inflation putting pressure on the Greenback.