US Dollar Falls as Treasury Doubles Debt Buybacks

The US Dollar Index (DXY) plummeted on Wednesday to its lowest level since late May, falling by 0.80% as the Treasury Department announced it would double its long-dated debt buybacks.

The DXY tracks the value of the Greenback against a basket of six major currencies and currently trades at around 98.86.

The Treasury said it will increase purchases in the 10-to-20-year and 20-to-30-year maturity sectors from $2 billion to at least $4 billion per operation, which has led to a sharp decline in longer-term US Treasury yields.

The benchmark 10-year yield fell by over 5 basis points to 4.64%, while the 30-year yield dropped nearly 9 basis points to 5.19%.