By Karen Brettell
NEW YORK, Aug 20 (Reuters) - The U.S. dollar fell to a three-month low against the euro on Thursday before paring losses after the Treasury Department moved to calm a bond market selloff that had pushed long-end yields to their highest level since 2007.
The Treasury said Wednesday it would double the size of its buybacks of 10- to 30-year debt to at least $4 billion per operation, an attempt to steady a market that had been rattled by concerns over the growing U.S. fiscal deficit.
The announcement triggered a sharp selloff in the U.S. currency as traders worried about a worsening fiscal picture and potentially higher inflation, boosting gold and bitcoin in what some call the "debasement trade."
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was last down 0.01% at 98.82, with the euro up 0.01% at $1.1678. The single currency earlier reached $1.171, the highest since May 14.
#since #fiscal #karen
NEW YORK, Aug 20 (Reuters) - The U.S. dollar fell to a three-month low against the euro on Thursday before paring losses after the Treasury Department moved to calm a bond market selloff that had pushed long-end yields to their highest level since 2007.
The Treasury said Wednesday it would double the size of its buybacks of 10- to 30-year debt to at least $4 billion per operation, an attempt to steady a market that had been rattled by concerns over the growing U.S. fiscal deficit.
The announcement triggered a sharp selloff in the U.S. currency as traders worried about a worsening fiscal picture and potentially higher inflation, boosting gold and bitcoin in what some call the "debasement trade."
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was last down 0.01% at 98.82, with the euro up 0.01% at $1.1678. The single currency earlier reached $1.171, the highest since May 14.
#since #fiscal #karen
3 months ago
