Dollar Holds Decline

2026-08-24 00:50 By Czyrill Jean Coloma 1 min. read

The dollar index held its decline around 98.8 on Monday, remaining under pressure after posting significant losses last week, as a sharp rise in Treasury yields heightened concerns over the US government’s mounting debt burden and weighed on the dollar’s appeal.

The greenback's decline came as Treasury Secretary Bessent outlined a debt-buyback strategy he described as a “Treasury twist,” under which the government would buy back longer-dated Treasury securities to help influence the yield curve and manage borrowing costs.

Meanwhile, investors continued to monitor tensions in the Middle East, with the US expected to announce new sanctions against Tehran.

Iran, which has already faced decades of US sanctions, said the new measures were “bound to fail.” Investors are now turning their attention to key US economic data and Federal Reserve policy signals, including the July PCE inflation report and remarks from Fed Chair Kevin Warsh at the Jackson Hole economic symposium later this week.



News Stream
Dollar Near 3-Week Low
The dollar index weakened to 101.5 on Tuesday, its lowest level in about three weeks, amid renewed concerns over AI, falling oil prices on hopes for a diplomatic resolution to the war in Iran, and weaker-than-expected housing data. Housing starts fell 5.2% in September, while pending home sales dropped to a record low, highlighting the continued impact of elevated mortgage rates on housing demand. Meanwhile, the Fed is widely expected to leave interest rates unchanged at its meeting next week, although markets anticipate a 25bps rate hike in December. Elsewhere, the euro rebounded as unrest in France eased overnight, while the yen appreciated, snapping a two-day losing streak after an auction of longer-dated Japanese government bonds attracted record demand.
2026-10-20
Dollar Slips as Investors Assess Fed Rate Outlook
The US dollar index edged lower to below 102 on Tuesday as investors evaluated the Federal Reserve’s monetary policy outlook ahead of its October 27–28 meeting. Market participants are also awaiting the latest PCE price index report, the Fed’s preferred measure of inflation due next week. Markets currently assign an 83% probability to the central bank holding interest rates steady next week, while pricing in a 94% chance of a rate hike in December. On Friday, Fed Chair Kevin Warsh declined to indicate the likely outcome of this month’s FOMC meeting but noted that stronger-than-expected inflation had not changed his assessment of the US economy. Elsewhere, the euro recovered modestly as European governments sought to contain widespread unrest that turned violent over the weekend. In Japan, the yen weakened despite hawkish remarks from Bank of Japan Governor Kazuo Ueda, who indicated that underlying inflation was nearing the central bank’s 2% target.
2026-10-20
Dollar Gains as Euro Comes Under Pressure
The dollar index rose toward 102 on Monday, benefiting mainly from the euro’s weakness following violent protests in France and other European countries and escalating hostilities between Russia and Ukraine. Investors also kept a close watch on developments in the Middle East, where clashes between Saudi Arabia and Iran-backed Houthi rebels in Yemen showed little sign of easing and tanker attacks in the Strait of Hormuz continued. Meanwhile, the dollar weakened on Friday after Federal Reserve Chair Kevin Warsh refrained from signaling the outcome of this month’s FOMC meeting but said that hotter-than-expected inflation had not altered his assessment of the US economy. The Fed has since entered its blackout period ahead of the October 27–28 policy meeting, with markets currently pricing in an approximately 84% chance of interest rates remaining unchanged.
2026-10-19