Forex
Home›Forex›Major Pairs›US dollar index slips below 99 as fiscal concerns weig…
US dollar index slips below 99 as fiscal concerns weigh on the currency
The Dollar Index traded near 98.8 and fell toward three-month lows after US Treasury said it will double long-end bond buybacks to $4 billion per operation.
The US Dollar Index, or DXY, slipped below 99 and traded near 98.8 during Asian hours on Monday, moving toward three-month lows as markets reacted to US Treasury’s longer-dated bond buyback plans, FXStreet reported.
The Treasury Secretary, Scott Bessent, said the department will double its long-end bond buybacks to $4 billion per operation to help cap rising 30-year yields. Marc Chandler, chief market strategist at Bannockburn Global Forex, said the effort to suppress US yields has not meaningfully driven yields lower and has instead undermined the dollar.
FXStreet added that the move comes as traders also weigh expectations for the Federal Reserve, with CME FedWatch Tool data indicating a 41.0% chance of a rate hike at the upcoming policy meeting, down from 47% a month earlier. The report also noted that Middle East tensions could support safe-haven demand for the US dollar in the near term, though strategists at Scotiabank said the currency is exposed to fiscal concerns under the current policy mix.
Latest closeDollar index 99.64 ▼0.3%