Updated
Updated · Yahoo Finance · Aug 21
Dollar Slips to 98.72 Near 3-Month Low as Treasury Buyback Doubts Grow
Updated
Updated · Yahoo Finance · Aug 21

Dollar Slips to 98.72 Near 3-Month Low as Treasury Buyback Doubts Grow

3 articles · Updated · Yahoo Finance · Aug 21

Summary

  • The dollar index fell to 98.72 and headed for a 0.94% weekly loss, leaving the U.S. currency near a three-month low.
  • Treasury buyback plans drove the slide after Scott Bessent signaled bigger repurchases, stoking fears efforts to cap long-term yields could erode confidence in the dollar.
  • The euro rose 0.13% to $1.1694 for a fourth straight weekly gain, while sterling added 0.15% to $1.3652 and stayed near its highest since May.
  • The yen strengthened 0.14% to 158.81 after Japan's core inflation accelerated in July, reinforcing expectations the BOJ could raise rates at its Sept. 17-18 meeting.
  • Those currency moves add to pressure from the Iran war and rate uncertainty, setting a tense backdrop for next week's Jackson Hole speech by Fed Chair Kevin Warsh.

Insights

Will the U.S. Treasury's controversial bond buybacks permanently shatter global confidence in the dollar?
Could Japan's looming interest rate hike finally trigger a massive collapse of the lucrative global carry trade?
Are unconventional debt management tactics secretly masking a much deeper liquidity crisis in the bond market?