US Dollar Weakens Amid Credibility Concerns Over Treasury Buybacks

The US dollar is wobbling as investors view the Treasury's bond buyback program as a temporary fix rather than a long-term solution to the country's fiscal concerns.

Treasury Secretary Scott Bessent has hinted at further increasing government repurchases of Treasuries, but this move failed to contain the selloff in US bonds. The euro rose to a three-month high of $1.1685, up 1% on the week, as investors grew wary of the US fiscal picture.

The dollar's weakness despite Treasury buybacks is due to rising concerns about US debt levels and an increasingly interventionist approach by the government. This has led to credibility issues with financial institutions, weighing heavily on the dollar.