Dollar Slips Below Key Level as Treasury Fears Resurface

The US Dollar Index slipped to 96.76 after two consecutive sessions of declines, extending losses as renewed unease over US Treasury demand weighed on sentiment. Reports that Chinese regulators advised institutions to reduce exposure to US government bonds added pressure, raising concerns about future foreign demand amid ongoing policy uncertainty from Washington.

Market attention has now shifted toward the delayed US jobs and inflation data scheduled for release this week. Traders are increasingly sensitive to any signs of cooling momentum, with markets already pricing in two rate cuts in 2026. Comments from White House economic adviser Kevin Hassett reinforced the cautious tone, highlighting slower job growth prospects driven by declining labour force participation and rising productivity.

Read more on how Treasury demand concerns, Fed rate expectations, and upcoming US data could shape the dollar’s next move