Dollar touches lowest level in three months

The US dollar touched its lowest levels against major currencies in three months on Thursday, following a move by the US Treasury Department to calm a wave of intense selling in the bond market, which pushed long-term yields to their highest since 2007.

The US Dollar Index, which measures the performance of the US currency against a basket of six major currencies, stabilized at 98.81 points, after dipping to 98.78 points, its lowest since the end of May.

The dollar’s weakness eased pressure on the yen, as the Japanese currency moved away from the closely watched 160-yen-per-dollar level, while the euro touched $1.1674, marking its highest since the end of May, according to Reuters.

Market movements came amid pressures faced by investors this week due to a sharp decline in the global bond market, amid growing concerns over worsening government debt and rising oil prices stemming from the ongoing US war on Iran.

Yields on 30-year US Treasury bonds had surged to their highest in 19 years at 5.337%, prompting the US Treasury to announce a doubling of its long-term bond buyback operations to support liquidity.