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US dollar slips after Treasury expands long-dated debt buybacks
The USD Index fell 0.9% to below 99.00, with EUR/USD climbing more than 0.8% to a three-month high before consolidating under 1.1700.
The U.S. dollar came under heavy selling pressure in the American session on Wednesday after the U.S. Treasury announced it would double the size of some long-dated debt buyback operations to support market liquidity, according to FXStreet.
FXStreet noted that the move came as market participants weighed the latest rate backdrop, including a sharp retreat in 30-year Treasury yields after they reached a 19-year high on Tuesday. By Wednesday, the 30-year yield declined nearly 2%, the 10-year reference fell 1.4%, and the USD Index dropped 0.9% to a level below 99.00.
In early Thursday trading, FXStreet said the USD Index was holding steady around 98.80 while traders looked ahead to mid-tier U.S. data releases, including weekly Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey for August.
The dollar weakness also showed up across major pairs: FXStreet reported EUR/USD gained more than 0.8% on Wednesday and extended higher into a fresh three-month peak, with the pair consolidating below 1.1700 in the European morning.
Latest closeEUR/USD 1.157 ▲0.4%