EUR/USD Slides as US Buybacks Weigh on Dollar Amid Iran Tensions

The EUR/USD currency pair is trading near 1.1680 in Asian hours as the US dollar weakens after the Treasury announced it would at least double buybacks of longer-dated debt, with purchases potentially rising beyond $4 billion.

This move is aimed at containing higher yields, but support for the dollar could come from safe-haven demand due to heightened tensions between the US and Iran. Tehran has rejected forthcoming US sanctions and warned of 'earthquake-like' retaliation if Washington takes further action.

The euro found support from inflation dynamics and expectations for ECB policy after Eurozone consumer inflation expectation eased to 2.9% in June, still above the ECB's 2% target.