Dollar Slumps on Treasury Buyback Plan

The US Dollar experienced a broad decline on Wednesday, dipping below the 99.00s region and holding under 100.00. This slump came as a result of 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 had little impact on the decline. Policymakers still view inflation as elevated and confirmed three officials voted for a rate hike, but traders considered the document to be backward-looking, given the softer inflation and weak jobs data released since the meeting.