OCBC strategists Sim Moh Siong and Christopher Wong say the Dollar has weakened to its lowest level since May as expanded Treasury buybacks pushed long-end US yields lower.

The US Dollar (USD) took a beating on Wednesday after US Treasury Secretary Scott Bessent announced a plan to buy back long-term government debt to ease Bond yields.

ING’s Chris Turner notes that US Treasury buy-back operations and a drop in longer-dated yields have supported equities and weighed on the Dollar.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 98.80 in the early European trading hours on Thursday.

The Dollar Index closed Wednesday 0.86% lower just beneath 98.80, its weakest close since mid-May, and it closed on the session low. The document that did the damage was not a central bank document.

The Dow Jones Industrial Average trades near 53,600 on Wednesday, more than 230 points and 0.44% higher, and none of that gain is about earnings, growth or the Federal Reserve.

The US Dollar Index (DXY) comes under fresh selling pressure on Wednesday as longer-term US Treasury yields fall sharply following the Treasury Department’s decision to expand its buyback operations.

BNY’s Geoff Yu highlights that international investors are aggressively cutting Dollar exposure as real-yield support erodes following the July FOMC meeting. The bank sees the Dollar decline as a normalization of previously extreme U.S. asset holdings rather than a collapse in U.S. exceptionalism.

MUFG’s Derek Halpenny highlights how elevated US Treasury yields and rising mortgage rates are beginning to weigh on the US housing market, with Housing Starts and Pending Home Sales softening.

Dow Jones futures inch higher 0.06% to trade around 53,440 during European hours on Wednesday. Meanwhile, S&P 500 futures remain steady near 7,710, and Nasdaq 100 futures edge lower 0.03%, trading near 29,580.

The US Dollar (USD) trades lower against its major currency peers on Wednesday ahead of the Federal Open Market Committee (FOMC) minutes of the July policy meeting, which will be published at 18:00 GMT.

ING’s Chris Turner notes that the Dollar remains supported by higher energy prices and long-end US yields, but FX volatility is still low, favouring carry trades.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is steadying after registering minor gains in the previous day and trading around 99.60 during the Asian hours on Wednesday.

The US President Donald Trump posted on his social network that “there are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran. The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating.

The highest long-dated US yields in nearly two decades have moved the Dollar Index by three hundredths of a point. Spot holds just above 99.50 after a session range of 17 pips, still beneath a flat 200-day Exponential Moving Average (EMA) near 99.75 that has capped every attempt for a fortnight.

A quarter-point Federal Reserve increase by December stopped being a certainty over the past eight days, and the Dow Jones Industrial Average is lower for it. Spot trades near 53,400, down roughly 105 points on the session and about 2.5% beneath the record just short of 54,750 set on August 5.

Rabobank’s Senior FX Strategist Jane Foley discusses how rising global bond yields and mounting concerns over United States (US) fiscal discipline are challenging the traditional safe haven role of US Treasuries and the US Dollar (USD).

Brown Brothers Harriman’s (BBH) Elias Haddad highlights a mixed backdrop for the Dollar, with dovish Federal Reserve (Fed) repricing seen capping US Dollar (USD) rebounds even as foreign demand remains strong.

Dow Jones futures fall by 0.25%, trading around 53,410 during European hours on Tuesday. Meanwhile, S&P 500 futures decline 0.52% to near 7,730, and Nasdaq 100 futures slip 0.92%, trading near 29,820.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, builds on the overnight goodish rebound from the 99.30 area, or the lowest level since June 5, and gains some follow-through traction on Tuesday.

OCBC’s Sim Moh Siong and Christopher Wong highlight that still-attractive US Dollar (USD) carry and softer United States (US) data, which have reduced the odds of a September Fed hike, should keep the Dollar rangebound.

The Dow Jones Industrial Average gave up close to 260 points to beneath 53,500, roughly half a percent lower, on the day the 60-day negotiating window meant to end the war over the Strait of Hormuz expired with nothing agreed to replace it.

The Dollar Index trades near 99.50, roughly a tenth of a percent lower, having opened directly on its 200-day Exponential Moving Average (EMA) and failed there inside the first minutes, with a session low just above 99.25 taking out the August range.

The Dow Jones Industrial Average trades near 53,550, down close to 200 points and roughly 1,200 beneath the record printed on August 5, on the day the 60-day negotiating window that was meant to end the war over the Strait of Hormuz lapses with nothing agreed to replace it.

Commerzbank’s Volkmar Baur notes that the US Dollar (USD) has weakened against the Euro (EUR) as markets steadily scale back expectations for further Federal Reserve (Fed) tightening relative to other G10 central banks.

The US Dollar Index (DXY) extends losses for the third consecutive day on Monday, with bears testing levels at two-month lows below 99.40 during the European session.

Dow Jones futures decline by 0.12%, trading around 53,740 during European hours on Monday. Meanwhile, S&P 500 futures gain, hovering around 7,820, and Nasdaq 100 futures surge by 0.5%, trading near 30,290.

DBS Group Research’s Philip Wee argues that the US Dollar (USD) is losing momentum as markets reassess United States (US)-Japan intervention, shifting Bank of Japan (BoJ) and Federal Reserve (Fed) expectations, and rising US fiscal risks.

MUFG’s Derek Halpenny and Lee Hardman note that weaker United States (US) data and lower short-term Treasury yields are undermining US Dollar (USD) support, even as the US Dollar Index (DXY) holds above its 200-day moving average near 99.200.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.50 in the Asian trading hours on Monday. The DXY loses momentum as data showed US Retail Sales unexpectedly declined in July.