Dollar Teeters Near Multi-Month Lows Amid Debt Nerves

The US dollar is trading near multi-month lows due to rising concerns over debt and inflation. The Canadian dollar slipped 0.2% in early trade, falling to CUS$1.3798 per dollar after Washington imposed 50% tariffs on Canadian goods.

Despite data showing the strongest US services growth in nearly two years, the dollar's decline continued, with its largest weekly drop against Bitcoin in nearly three-and-a-half years on Sunday.

The US Treasury's decision to double buybacks at the long end to $4 billion per operation has spooked traders and hit the dollar. Shane Oliver, head of investment strategy at AMP, said this move is 'reigniting the US$US debasement trade.'

Markets are also awaiting clarity on the outlook for US interest rates when Federal Reserve Chairman Kevin Warsh speaks in Jackson Hole, Wyoming, on Friday.