Dollar Slides to Three-Month Low vs. Euro as Treasury Bond Buybacks Spark Debasement Concerns

The dollar hit a three-month low against the euro on August 21, 2026, after the Treasury expanded buybacks of longer-dated bonds. Investors saw this as pushing down long-end yields — the return on long-term debt — shifting pressure onto the currency. Gold rose over 3%; bitcoin gained. A weaker dollar can lift import costs and erode savers' purchasing power.