Dollar index near 98.8 as weekly drop nears 1%
The US dollar index traded around 98.8 on Friday and was on track to lose nearly 1% for the week amid bond-buyback plan volatility.
The dollar index traded around 98.8 on Friday and was on track to lose nearly 1% for the week, as the US government’s bond buyback plan heightened market volatility and boosted demand for safe-haven metals and other currencies at the expense of the greenback.
The dollar index fell sharply on Wednesday after the US Treasury Department announced larger debt buybacks aimed at containing borrowing costs.
Long-term Treasury yields initially declined on Wednesday before rebounding a day after amid concerns that the government’s plan may provide only a temporary solution.
The market moves underscored concerns over rising US government debt, making the dollar less attractive to investors.
Meanwhile, higher oil prices as the US prepares sweeping new economic sanctions against Iran also added to inflation concerns.