The dollar is continuing to slide in the wake of Treasury’s effort to quell a runup in bond yields. The WSJ Dollar Index, which measures the greenback’s value against a basket of currencies, fell further on Friday in European trading to hover around 95.25, its lowest level since May.
The greenback has been retreating in recent weeks after the U.S. moved to support the falling Japanese yen by selling euros and buying yen alongside Japan’s finance ministry. Treasury’s announcement that it would increase its buyback of longer-dated bonds revived investor worries about a potential “debasement” of the dollar, Jonas Goltermann of Capital Economics wrote in a note.
