US Dollar Hits Worst Week Since July Amid Global Economic Shifts

The US dollar has suffered its worst week since late July, declining sharply as markets reacted to a decision by US Treasury Secretary Bessent to double liquidity buybacks. The move was seen as significant in signaling policymakers' growing reluctance to tolerate higher borrowing costs.

The AUD/USD gained 0.8% to reach its highest level since June 2, nearing key resistance at 0.7200. Meanwhile, the NZD/USD also rose, gaining 0.6% and approaching key resistance at 0.6000.

In Japan, private sector growth surged in August, with the S&P Global Flash Composite PMI rising to 53.4 from 52.7. This was driven by stronger demand and business confidence climbing to its highest level since February.