Dollar Slips as Treasury's Bond Market Buybacks Raise Concerns
The US dollar has been experiencing a wobbly week due to concerns over the Treasury's efforts to calm the bond markets. US Treasury Secretary Scott Bessent announced that he may increase the government's repurchases of Treasuries further, which could undermine confidence in the currency.
Investors are questioning whether these efforts will only shift pressure elsewhere in US markets, with the dollar potentially bearing the brunt. Chief Markets Economist at Capital Economics, Jonas Goltermann, said that 'When it comes to the dollar, even the hint of financial repression and more unconventional policy is unhelpful.'
The dollar index, which measures the US currency against a basket of six peers, was headed for a weekly fall of about 0.94 percent and was last at 98.65, languishing near a three-month low.