US Dollar Slides Amid Rising Debt Concerns and Treasury Buyback Plans

The US dollar traded near multi-month lows on Monday as traders remained cautious due to concerns about rising debt and the impact of the U.S. Treasury's promise to buy back more long-dated bonds.

The Canadian dollar slipped 0.3% in Asia trade to C$1.3807 per dollar after trade talks with the US collapsed, and Washington imposed 50% tariffs on Canadian goods with Canada retaliating in kind.

The euro remained above $1.16 at $1.1680 while the yen stayed strong around 159 per dollar.

Last week's announcement by the U.S. Treasury to double buybacks at the long end to $4 billion per operation spooked traders and hit the dollar, with Goldman Sachs analysts stating that this move leaves the dollar as the remaining release valve to encourage foreign inflows to finance the US' current account.