US Dollar Decline Accelerates as Yen Strengthens on Capital Flows and ECB Hawkishness
The US dollar has been declining over the past six trading sessions, with only one session seeing an increase. Market concerns about the limited scope of US Treasury interventions in the debt market and the European Central Bank's readiness to aggressively tighten monetary policy have weighed on the greenback.
Capital flows from the United States to Japan have also contributed to the strengthening of the yen. Despite other disturbances in international macro markets, the dollar's weak posture has remained unchanged.
The US Treasury plans to repurchase $6 billion worth of long-term bonds through six rounds before early November, with further action plans for the subsequent three months to be announced later. However, investors had anticipated more bold intervention measures from the Treasury.