The New Zealand Dollar climbs nearly 1% as US 10-year yields fall to 4.651% after Treasury announces larger buyback operations.
The New Zealand Dollar (NZD) rallied against the US Dollar (USD) on Wednesday, trading at 0.5930, up 0.96% as US Treasury yields declined sharply. The US 10-year yield dropped to 4.651% from an earlier high of 4.712%, reducing the Greenback’s appeal.
The US Treasury announced plans to double buyback operations for longer-dated securities, increasing the size from $2 billion to at least $4 billion per operation between September 9 and November 4. The move aims to improve liquidity amid rising borrowing costs and concerns over deficits and inflation.
The US Dollar Index (DXY) fell 0.81% to 98.85, its lowest since May 29. Investors now await the Federal Open Market Committee (FOMC) meeting minutes for further policy clues.