Dollar hugs three-month lows as Treasury seeks to soothe the bond market

The U.S. dollar nursed steep losses on Thursday, hovering near three-month lows as investors digested measures announced by the U.S. Treasury Department to help calm the bond market that had seen long-end yields hit their highest since 2007.

The dollar index =USD, which measures the U.S. currency against six other units, was at 98.938, around its lowest level since mid-May. The euro EUR= was at $1.1676, perched at the highest level since late May.

Brian Jacobsen, chief economic strategist at Annex Wealth Management, said the move was a temporary salve and shows how "we're in an era of fiscal dominance and modern monetization."