The US dollar found its footing on Monday, stabilizing after last week’s sell-off that had pushed the dollar index to its lowest level in months. The Swiss franc, which had strengthened sharply amid safe-haven demand, eased against the greenback as traders reassessed the Federal Reserve’s policy path and awaited key inflation data and Fed speeches.
The earlier dollar weakness was driven by an expanded US Treasury buyback program, which increased demand for longer-dated bonds and pressured yields. Lower yields reduced the dollar’s appeal to yield-seeking investors, while the Swiss franc benefited from risk-off flows. The buyback surge also signaled potential concerns about liquidity in the Treasury market, prompting investors to reassess dollar positions.
For crypto markets, the dollar’s stabilization matters because a weaker dollar and lower Treasury yields often support risk assets, including Bitcoin. However, traders remain cautious as the Swiss National Bank could intervene to limit franc strength, and any unexpected economic data could reignite volatility in both forex and crypto markets.
