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Dollar slips below 99 as Treasury buyback boosts liquidity support
The dollar’s drop came after the US Treasury said it would at least double buyback liquidity support for longer dated coupon securities starting September 9, with traders also weighing July FOMC minutes.
FXStreet reports the US Dollar Index, DXY, slid broadly on Wednesday, moving below the 99.00s area and holding under 100.00.
The move followed the US Treasury’s plan to at least double the size of its liquidity support buyback operations for longer dated coupon securities, effective September 9. FXStreet says July FOMC minutes did little to stop the decline, with traders viewing the record as backward looking as newer data showed softer inflation and weak jobs figures since the meeting.
FXStreet also points to currency moves as the dollar retreated, including EUR/USD extending beyond 1.1675 to its highest level since late May, GBP/USD climbing past 1.3600 to a three month peak, and USD/JPY easing toward 158.00 as US yields fell.
The note adds that Thursday’s calendar includes Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey, while gold and silver rose as yields tumbled, and markets look to central bank and regional data including decisions from the People’s Bank of China and Australia’s employment report.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|EUR/USD 1.157 ▲0.4%