Asian currencies have strengthened amid growing investor skepticism about the U.S. Treasury’s bond buyback strategy, according to the Wall Street Journal. The announcement of increased buybacks of longer-dated bonds led to a decline in U.S. Treasury yields and a weaker dollar. The USD/JPY and USD/CNY pairs reflect this dollar weakness. Market participants question the plan’s effectiveness in stabilizing the economy, which could impact interest rate expectations. This environment may also support gold prices, as lower rates typically enhance the appeal of non-yielding assets like gold.
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