On Thursday, the U.S. dollar hit a three-month low after the Treasury Department took steps to stabilize the bond market, which had experienced a selloff pushing long-term yields to their highest since 2007.
The dollar index, indicating the value of the U.S. currency against six other currencies, stood at 98.854, near its lowest point since mid-May. Meanwhile, the euro reached $1.1674, its highest level since late May.
Earlier this week, the 30-year Treasury yield hit a 19-year high of 5.337%, leading the U.S. Treasury to announce plans on Wednesday to increase liquidity support buyback operations for longer-dated bonds.
Investors have been struggling with a significant selloff in the global bond market, driven by rising fears of rising government debt and looming concerns about higher oil prices stemming from stalled efforts to resolve the U.S.-Israeli conflict over Iran.
The news comes as the Treasury’s most recent monthly U.S. financial report shows a $432.3 billion deficit in July, the largest since March 2021. The year-to-date deficit is approaching $1.8 trillion, surpassing figures from the same period last year.
By CEO NA Editorial Staff
