Dollar Tumbles to Three-Month Low on Treasury's Bond Market Reassurance
The US dollar fell to a three-month low on Thursday after the Treasury Department took steps to calm a bond market selloff that had pushed long-end yields to their highest since 2007. The dollar index, which measures the dollar against six other currencies, was at 98.723, its lowest level since May 14.
The euro rose to $1.1692, its highest level since mid-May, after the Treasury's move to increase buybacks of Treasury securities with maturities between 10 and 30 years.
ING global head of markets Chris Turner said the Treasury's move should reassure markets that longer-dated bonds are unlikely to face a disorderly selloff. 'It reduces one of those left-field risks out there which is good for risk, good for the investment environment and slightly dollar negative,' Turner said.