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Dollar drops after Treasury announces double long-bond buybacks

8/19/2026

41 3 Full Breakdown

Summary

Dollar Falls

The U.S. dollar fell on August 19, 2026 after Treasury announced double buybacks for longer-dated bonds.
The euro and sterling rose to $1.1676 and $1.3625, their highest levels in over 2½ months and since May 11.
The yen strengthened to 158.36 per dollar as the dollar index fell to 98.93, its lowest since late May.
Commerzbank analysts said doubts about Federal Reserve (Fed) rate cuts are supporting the dollar.

Summary

Dollar Holds

USD/CHF trades around 0.8115 on August 19 2026, just above the 20-day EMA of 0.8111, giving a modest bullish bias.
Rabobank analysts say the market sees little chance of a Swiss National Bank rate hike in the next 12 months, weakening the franc’s safe-haven appeal.
If the pair falls below the 0.8111 support, a pullback toward the 0.8050 region may follow.

History

Historical Context

After the Federal Reserve announced in June 2013 that it would begin tapering QE, the Dow Jones fell about 4 % and the dollar surged, pressuring the euro. The Fed’s balance sheet, which peaked at $2.1 trillion in 2010, subsequently shrank. With the Swiss National Bank holding assets equal to roughly 100 % of Swiss output, analysts watch its policy and ongoing FX volatility.

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Dollar Falls

The U.S. dollar fell on August 19, 2026 after Treasury announced double buybacks for longer-dated bonds.
The euro and sterling rose to $1.1676 and $1.3625, their highest levels in over 2½ months and since May 11.
The yen strengthened to 158.36 per dollar as the dollar index fell to 98.93, its lowest since late May.
Commerzbank analysts said doubts about Federal Reserve (Fed) rate cuts are supporting the dollar.

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