Dollar Stays Weak in Wake of Treasury's Buyback Announcement -- Market Talk

0636 GMT - The dollar trades steady but remains close to the 11-week low reached Wednesday after the U.S. Treasury announced it would buy back more of its longer-dated securities. The increased issuance of short-end Treasurys to finance the buybacks links the government's financing costs more closely to the Federal Reserve's monetary policy, Danske Bank's Filip Andersson says in an note. Perhaps it was renewed concerns over the Fed's independence that weakened the dollar in response to the Treasury's announcement, he says. Elsewhere, the Fed's July meeting minutes Wednesday contained few surprises as the committee remained divided over its perception of inflation risks, he says. The DXY dollar index trades flat, having reached as low as 98.767 Wednesday. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

August 20, 2026 02:36 ET (06:36 GMT)