The U.S. dollar came under renewed pressure on Friday, with the Dollar Index slipping to 98.687 points, just shy of the three-month low of 98.557 touched a day earlier. Over the past five trading sessions, the greenback has shed roughly 1% of its value.
The latest leg of dollar weakness followed a sharp rise in U.S. Treasury yields, which accelerated after the Treasury Department announced plans to double buybacks of certain long-dated bonds. The yield on the 30-year U.S. government bond climbed 1.4 basis points to 5.2508%, extending a weekly surge that pushed global bond yields to their highest levels in decades. Concerns over ballooning U.S. budget deficits and persistent inflation have driven the sell-off in fixed income markets.
Analysts highlighted the broader implications of the Treasury’s move, framing it as an unconventional policy tool deployed amid elevated debt levels and political uncertainty. U.S. federal debt surpassed $40 trillion for the first time this month, intensifying scrutiny of fiscal sustainability.
Investors, seeking shelter from dollar volatility and rising borrowing costs, increased allocations to alternative assets. Bitcoin surged by as much as 5.7% during the session to reach $76,784, its highest level since early June. For the week, the cryptocurrency has gained more than 20%. Gold prices also advanced, climbing 1.4% on Friday to $4,567 per troy ounce, bringing its weekly gain to approximately 4%.
