Dollar Extends Losses as Treasury Buyback Improves Risk Sentiment -- Market Talk

0746 GMT - The dollar falls to a three-month low against a basket of currencies as the U.S. Treasury's decision to increase buybacks of long-term bonds boosts risk sentiment, ING's Chris Turner says in a note. The announcement suggests Treasury Secretary Scott Bessent is willing to step in to curb rising long-term borrowing costs, he says. This reduces one of the key threats to risk assets this summer, weighing on the dollar as a safe haven and supporting emerging market currencies, he says. The DXY dollar index falls to as low as 98.708. It could probably extend losses to 98.65, Turner says. "The next stop would be 98.00 should risk assets build another leg higher on this more activist U.S. Treasury." (renae.dyer@wsj.com)

(END) Dow Jones Newswires

August 20, 2026 03:46 ET (07:46 GMT)