Forex
US Dollar Tumbles as Treasury Yields Fall, Euro Hits June Highs
The US Dollar took a hit on Wednesday as the 30-year Treasury yield dropped by around 9 basis points to near 5.20%, following an announcement from the US Department of the Treasury that it will at least double the size of its liquidity-support buyback operations for longer-dated nominal coupon securities.
The maximum size of each operation will increase from $2 billion to at least $4 billion, which led to a sharp fall in long-term US Treasury yields as bond prices rose.
The Greenback was already trading on the back foot earlier on Wednesday due to softer US economic data in recent weeks, prompting traders to scale back expectations of a Federal Reserve interest-rate hike at the upcoming meeting.