Euro Surges Past $1.17 as US Treasury Buyback Plan Crushes US Dollar

The Euro (EUR) surged against the US Dollar (USD) on Thursday as the US Treasury's plan to boost buybacks of long-term Government Bonds sent the Greenback tumbling across the board.

The EUR/USD pair traded above $1.1700 at the time of writing after surging about 1.13% from Wednesday's lows.

According to MUFG analysts, the US Treasury's plan to double the size of liquidity support buyback operations for longer-dated securities could lead to a 'counter-productive' effect for the US Dollar.

This is because it may reduce appetite for holding US assets and exposure to the US dollar, leading to lower yields on long-term Government Bonds.