Forex News: U.S. Dollar Ticks Higher Amid U.S. Treasury's Debt

U.S. Dollar Ticks Higher Amid U.S. Treasury's Debt Buyback Decision, U.S.-Iran Faceoff

(RTTNews) - The U.S. Dollar value ended nearly flat as investors watch how the U.S.-Iran standoff unfolds in the coming days after the U.S. announced an economic blockade on Iran. Traders also analysed Wednesday's decision by the U.S. Treasury Department to double the long-term debt buybacks.

Today, the U.S. Dollar Index DXY which measures the Greenback against a basket of other major currencies was last seen trading at 98.84, up by 0.06 (or 0.06%).

The S&P Global's U.S. Manufacturing Purchasing Managers' Index eased to 53.20 in August 2026 from 53.90 previously, flash estimates showed.

The Services PMI increased to 56.80 in August from 54.60 in the previous month, well above market expectations of a drop to 54.00.

While against the Euro, the USD was trading at 1.168, up by 0.02%, against the GBP, the USD was trading at 1.364, down by 0.09%.

Against the USD, the Japanese Yen was trading at 158.972, up by 0.04%, the Swiss Franc was trading at 0.801, down by 0.12%; and the Canadian Dollar was trading at 1.377, up by 0.17%.

Against one unit of Australian Dollar, the USD was trading at 0.717, down by 0.81%.

On Wednesday, the U.S. Treasury Department announced that it will at least double the size of its liquidity-support buyback operations for longer-dated Treasury securities.

The treasury is taking efforts to curtail the increase in long-term bond yields.

With inflation expectations increasing and real yields declining, precious metals surged.

The Treasury planned to increase the maximum purchase from $2 billion to nearly $4 billion per operation, beginning September 9.

On Thursday, in an interview with CNBC, U.S. Treasury Scott Bessent stated that the accelerated buyback of government debt could be higher than the announced $4 billion. He also observed that the level of yields did not factor into the buybacks decision and he wanted to see fundamentals controlling the market.

On Wednesday, an update from the Treasury recorded that the U.S. national debt crossed $40 trillion. Bessent expressed optimistically that the U.S. can grow its way out of the debt.

Yesterday night, U.S. Vice President JD Vance stated that Bessent has a discreet plan to get the U.S. economy at a point where it grows faster than its debt. Vance reaffirmed that Bessent has the support of U.S. President Donald Trump.

In a significant move against Iran, yesterday Trump announced a crushing operation on the nation on a scale never seen before.

Calling it an economic D-day for Iran, Trump threatened that any other nation that allows its financial institutions, businesses, airports, or other entities to provide any lifeline for Iran would face similar action.

However, Iran downplayed Trump's threats with its Foreign Minister Abbas Araghchi calling it a mere diversionary tactic to turn the global attention from the humongous debt that the U.S. has.

Though investors have discounted the possibility of a diplomatic resolution to the U.S.-Iran crisis in the near-term, Trump's decision to use economic measures in place of military maneuvers against Iran has largely taken away the safe-haven demand for the U.S. dollar in the near-term, pressuring the U.S. dollar on the downside.

According to the CME Group's FedWatch Tool, currently investors are betting on a 40.40% chance of a 25-basis-point interest rate-hike at its upcoming meeting of the U.S. Federal Reserve on September 15-16 while the odds on rates being held at the current level stand at 59.60%.

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