Dollar Takes a Hit as Bond Buybacks and Fiscal Worries Rise

The US Dollar Index (DXY) has softened below 99.00 in Asian trading hours on Monday, reaching near three-month lows due to concerns over US fiscal policy.

This comes after US Treasury Secretary Scott Bessent announced that the department will double its long-end bond buybacks to $4 billion per operation to cap surging 30-year yields.

According to Marc Chandler, chief market strategist at Bannockburn Global Forex, 'Bessent’s efforts to suppress U.S. yields haven't done much for U.S. yields, but it's undermined the dollar.'

The recent US inflation data shows signs of easing, although some Federal Reserve officials stated they would need more evidence that price pressures were receding.