The dollar hit a three-month low against the euro in the New York market, weighed down by the U.S. Treasury's indication that it plans to expand the scale of its long-term Treasury buybacks.
The dollar hit a three-month low against the euro in the New York foreign exchange market. The U.S. Treasury disclosed plans to expand the scale of its long-term Treasury buybacks, prompting broader expectations that downward pressure on the dollar would intensify.
Treasury Secretary Bessent hinted at the possibility of expanding the scale of Treasury buybacks. On the 19th, the U.S. announced that it would double the size of liquidity-support purchase operations for long-term nominal coupon-bearing Treasuries to at least $4 billion per operation. Although the market reaction was limited, the move was seen as a factor weighing on the dollar.
Amid speculation over the direction of U.S. Treasury yields, some said that expanded buybacks would shift the burden of fiscal concerns onto the currency. Some analysts warned that measures to contain yields could prove ineffective and trigger further dollar weakness.
The yen strengthened 0.02% against the dollar to ¥159.01. While expectations grew that the Bank of Japan may raise interest rates, European currencies remained slightly elevated, and bitcoin surged to around $77,178.