Treasury buybacks, sanctions and central-bank speeches in focus
The dollar logged its largest weekly drop against bitcoin in nearly three-and-a-half years on Sunday and it's been sliding sharply on gold over revived fears the currency will suffer if the U.S. tries to hold down yields.
Long-end yields have been climbing globally on a combination of a solid economic growth outlook, rising inflation expectations and nerves about ballooning sovereign debts.
Last week, after 30-year yields hit almost two-decade highs, the U.S. Treasury announced it would double buybacks at the long end to $4 billion per operation.
The size is paltry in a market worth $32 trillion but the interventionist signal spooked traders and hit the dollar.
Later on Monday, at 1800 GMT, U.S. Treasury Secretary Scott Bessent is due to hold a press conference after threatening "the toughest sanctions in history" on Iran, with markets focused on whether he will target China.
Market participants will also be hoping for some clarity on the outlook for U.S. interest rates when Federal Reserve Chairman Kevin Warsh speaks in Jackson Hole, Wyoming, on Friday.
A Thursday appearance by Bank of Japan deputy governor Ryozo Himino will also be closely watched as a prelude to next month's policy meeting.
Dollar stays near multi-month lows as bond-market nerves persist
A wavering dollar was pinned near multi-month lows on Monday in a market unsettled by the U.S. Treasury's promise to buy back more long-dated bonds, while traders awaited details of sanctions on Iran and policy speeches this week in the U.S. and Japan.
The Canadian dollar slipped 0.2% in Asia trade, to C$1.3798 per dollar, after trade talks with the U.S. collapsed and Washington imposed 50% tariffs on Canadian goods, with Canada retaliating in kind.
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