16:07 - 24.08.2026

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August 24, Fineko/abc.az. US Treasury Secretary Scott Bessent’s August 19 announcement regarding plans to scale up long-term securities buybacks has sparked a heavy sell-off wave for the dollar across currency markets.

Following the announcement, the dollar recorded its steepest single-day drop in three weeks, accompanied by intense selling activity in the spot market. Torsten Schoeneborn, Co-Head of G-10 FX Trading at Barclays, noted that hedge fund clients noticeably accelerated their dollar sales.

Market participants view the Treasury's shift toward active yield curve management—requiring the issuance of more short-term debt to fund long-term buybacks—as a key factor undermining confidence in the currency. Analysts emphasize that while this strategy, dubbed the "Treasury Twist," aims to lower borrowing costs, it ultimately heightens downward pressure on the US dollar.