US Dollar Fluctuates Near Multi-Month Lows as Sovereign Debt Trajectory Restrains Greenback Sentiment

Singapore, 24 August 2026 – The United States Dollar Index (DXY) traded under persistent pressure near multi-month lows across Asian foreign exchange trading sessions, as global currency allocators, sovereign reserve managers, and institutional fixed-income investors reassessed the long-term fiscal trajectory of the US economy following renewed Treasury bond buyback commitments and escalating national debt servicing obligations.

Across major currency pairs, the greenback exhibited broad-based vulnerability against both European and Asian counterparts. The euro maintained firm footing comfortably above the $1.16 threshold at $1.1680, buoyed by stabilizing Eurozone wage growth and improving trade balances. The Japanese yen strengthened to the firm side of 159 per dollar, supported by widening speculation regarding Bank of Japan monetary normalization. In Australasia, the Australian dollar and New Zealand dollar traded near three-month highs at $0.7166 and $0.5972 respectively, reflecting robust commodity export demand. Conversely, the Canadian dollar softened 0.3% to C$1.3807 per dollar following the breakdown of bilateral trade discussions with Washington and the imposition of reciprocal 50% import tariffs.