Trump's Surprise Bond Buyback Sinks US Dollar

The US dollar plummeted by its most in three weeks after an unexpected bond buyback by the Trump administration. The move reversed a Treasury market rout that had pushed long-dated yields to their highest since 2007.

The Bloomberg Dollar Spot Index dropped as much as 0.8% to its lowest level since May 12. This decline in yields caused by the US Treasury's action drove the greenback down against all of its major counterparts, including the yen.

The Swiss franc and New Zealand dollar were among the biggest gainers on Wednesday. The dollar tumbled to a low not seen since May 12, as investors reacted to the unexpected bond buyback by the Trump administration.