#USDollarFallsToThreeMonthLow
The U.S. Dollar Index (DXY) plunged to a three-month low, dropping to 98.72, as a surprise liquidity intervention by the U.S. Treasury Department triggered a major sell-off in the greenback.🔎 The Catalyst: Treasury's Bond Market RescueThe primary driver behind the dollar’s slide was an unexpected policy shift by Treasury Secretary Scott Bessent to halt a brutal rout in the sovereign debt market.Aggressive Debt Buybacks: To cool down a bond market panic that saw 30-year Treasury yields skyrocket to a 19-year high of 5.33%$F , the Treasury Department announced it would double its liquidity support buyback operations for longer-dated bonds.The Dollar Devaluation Impact: By stepping in to absorb long-term bonds and cap climbing yields, the Treasury signaled a willingness to loosen global dollar liquidity. Investors reacted by dumping the dollar, fearing that expanding structural debt buybacks could systematically devalue the currency.$USDT
The U.S. Dollar Index (DXY) plunged to a three-month low, dropping to 98.72, as a surprise liquidity intervention by the U.S. Treasury Department triggered a major sell-off in the greenback.🔎 The Catalyst: Treasury's Bond Market RescueThe primary driver behind the dollar’s slide was an unexpected policy shift by Treasury Secretary Scott Bessent to halt a brutal rout in the sovereign debt market.Aggressive Debt Buybacks: To cool down a bond market panic that saw 30-year Treasury yields skyrocket to a 19-year high of 5.33%$F , the Treasury Department announced it would double its liquidity support buyback operations for longer-dated bonds.The Dollar Devaluation Impact: By stepping in to absorb long-term bonds and cap climbing yields, the Treasury signaled a willingness to loosen global dollar liquidity. Investors reacted by dumping the dollar, fearing that expanding structural debt buybacks could systematically devalue the currency.$USDT