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

BusinessInternationalDollar trading near multi-month lows, restrained by debt nervesBy Reuters -Aug 24, 2026Add ARY News on GoogleFile photoAAResizeA wavering dollar teetered near multi-month lows on Monday in a market unsettled by the U.S. Treasury’s ​promise to buy back more long bonds, while traders awaited details of sanctions on Iran and on policy ‌speeches this week in the U.S. and Japan. The Canadian dollar slipped 0.2% in early 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. The Australian and New Zealand dollars traded just shy of three-month highs at $0.7171 and $0.5979 ​respectively. The euro was comfortably above $1.16 at $1.1685 while the yen kept to the strong side of 159 per dollar. Friday data showing ​the strongest U.S. services growth in nearly two years in August held off dollar sellers in steady early ⁠trade. 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. The mood was keeping Australian dollar above 71 cents, he said. Sterling was firm at $1.3650 in morning trade ‌and the ⁠yuan , which notched an eighth st...