Forex-Dollar trading near multi-month lows, restrained by debt nerves

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.

"The U.S. Treasury's attempts to artificially hold down long-term bond yields appears to be reigniting the $US debasement trade," said Shane Oliver, head of investment strategy at Australian financial services firm AMP.