Dollar Slides Amid US Debt Fears

The US dollar is trading near multi-month lows as investors remain cautious about rising debt levels and interest rates. The currency's decline has been driven by concerns that the US Treasury's efforts to buy back long-term bonds could lead to a decrease in the value of the dollar.

Last week, the US Treasury announced plans to double its buyback program at the long end, which has spooked traders and hit the dollar. The move is seen as an attempt by the Treasury to artificially hold down long-term bond yields.

The Canadian dollar slipped 0.2% in early trade on Monday, while the Australian and New Zealand dollars traded near three-month highs. The euro was comfortably above $1.16 at $1.1685, while the yen remained strong at 159 per dollar.