Dollar Tumbles to Three-Month Low Amid Treasury's Bond Market Interventions

The US dollar fell to a three-month low on Thursday after the Treasury Department took steps to calm bond market jitters, lifting risk sentiment and undercutting the currency.

According to Chris Turner, global head of markets at ING, the 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.

The dollar index, which measures the dollar against six other currencies, was at 98.723, its lowest level since May 14.

Investors have been grappling with a sharp selloff in the global bond market due to concerns about soaring government debt and higher oil prices.