Dollar Rebounds From Losses Sparked by Treasury Buyback Plan
· Business · LiveMint, Economic Times, Reuters
The U.S. dollar recovered from earlier losses to post a modest gain on Thursday as traders assessed whether the U.S. Treasury Department can successfully steady longer-term yields. The Treasury announced on Wednesday that it would double its buybacks of 10- to 30-year debt to at least $4 billion per operation to address growing fiscal deficit concerns. The announcement triggered a currency selloff amid worries over deficit expansion and a debasement trade that has boosted gold and bitcoin. Treasury Secretary Scott Bessent stated on Thursday that yields do not reflect underlying fundamentals and hinted at potential further increases in bond repurchases. The dollar index rose 0.06% to 98.89, while the Japanese yen weakened 0.6% against the greenback to 159.12 per dollar.
Why it matters
Fluctuations in the U.S. dollar and Treasury yields directly impact global currency markets, emerging market capital flows, and commodity prices.
Read the original report — LiveMint
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