Dollar Slides to Three-Month Low Amid Treasury Bond Market Intervention

The U.S. dollar fell to its lowest level in three months on Thursday as the Treasury Department moved to calm bond market jitters.

The dollar index, which measures the dollar against six other currencies, was at 98.723, a level not seen since May 14.

ING global head of markets Chris Turner said the Treasury's move to increase buybacks of Treasury securities with maturities between 10 and 30 years should reassure markets that longer-dated bonds are unlikely to face a disorderly selloff.

Investors have been grappling this week with a sharp selloff in the global bond market on mounting concern about soaring government debt and the specter of higher oil prices due to the lack of progress in ending the U.S.-Israeli war with Iran.