The dollar index extended losses after the U.S. Treasury announced expanded buyback operations, pressuring the greenback.
The dollar index (DXY) fell to 98.46 on Thursday, its lowest level since mid-May, as the U.S. Treasury’s buyback program weighed on the currency. The index settled near 98.55 after intraday declines, extending a broader downtrend.
Prior to the move, the DXY had traded in a tight range around 100 for much of the quarter, with last week’s close at 99.12. The May 14 low of 98.32 remains the next support level, while analysts cite reduced Fed rate-cut expectations as a secondary factor.
Markets showed limited immediate reaction, with major currency pairs holding steady in thin afternoon trading.