The DXY fell to its lowest level since May after the US Treasury announced plans to double liquidity support buybacks for longer-dated securities.
The US Dollar Index (DXY) extended its decline on Wednesday, sinking below the 99.00 level and holding under 100.00. The move followed the US Treasury’s announcement to at least double the size of its liquidity support buyback operations for longer-dated coupon securities, set to begin September 9.
The July FOMC Minutes, released the same day, showed policymakers still view inflation as elevated, with three officials voting for a rate hike. However, traders largely dismissed the document as outdated, given softer inflation and weaker jobs data released since the meeting.
EUR/USD climbed past 1.1675, reaching its highest level since late May, while GBP/USD breached 1.3600, hitting a three-month peak. The Dollar weakened broadly, with the Australian Dollar among the strongest gainers against it.