EUR/USD Hits Three-Month High on US Treasury Concerns

The EUR/USD currency pair has reached its highest level in three months, trading at 1.1682 after a 2.76% increase over the past thirty days.

This rally is largely driven by concerns about US Treasury market conditions and the government's expanded program of long-dated debt buybacks, which have led investors to scale back expectations for further tightening.

The dollar index has fallen to 98.723, its lowest reading since May 14, and it has been grinding lower without a meaningful bounce for several sessions.

This move is significant because the euro carries roughly 57% weight in the dollar index basket, making EUR/USD and DXY close to mirror images by construction.