- BIST10011,041-1.60%
- USD49.63+0.05%
- EUR55.70+0.05%
- GOLD4,032.50-0.69%
- INTEREST36.00%-1.00
- BITCOIN81,673+0.44%
- October 23, 202610°
- BIST10011,041-1.60%
- USD49.63+0.05%
- EUR55.70+0.05%
- GOLD4,032.50-0.69%
- INTEREST36.00%-1.00
- BITCOIN81,673+0.44%
- October 23, 202610°
US debt and Treasury moves weaken the dollar as gold and Bitcoin rise
The US debt burden, budget deficit and market interventions increased pressure on the dollar, pushing the dollar index down to 98.7. Gold and Bitcoin posted strong gains as investors turned to alternative assets.
Debt, budget and market-management issues surrounding the US economy contributed to the dollar's decline in global markets, while investor interest shifted toward alternative assets. The DXY dollar index fell by approximately 1 percent over the week.
The index fell another 0.1 percent in Friday trading to 98.7. The DXY thus continued to trade near its lowest levels of the past three months.
Bond yields maintain their upward trend
The US Treasury Department's plan to double the volume of buyback operations for long-term bonds was able to limit the rise in yields only temporarily.
The yield on the US 30-year Treasury bond rose 1.4 basis points on Friday to 5.2508 percent. The approach of government bond yields worldwide to their highest levels in years because of budget deficits and inflation concerns also weakened expectations that the US Federal Reserve would raise interest rates in the future.
Treasury moves intensify debate over confidence
Another source of pressure on the dollar was the debate over confidence in economic institutions alongside US public finances. Analysts view the unusual bond buyback operations used by the Treasury Department to increase liquidity as a strong indication of the government's willingness to control long-term borrowing costs.
With the budget deficit approaching 6 percent and public debt exceeding $40 trillion, the operations are expected to support investors' risk appetite and contribute to a more controlled decline in the dollar's value.
Analyses indicate that the 98.65-98.70 range is providing support for the DXY, while a sustained rise above 99 is considered difficult for the index in the short term.
Carol Kong, a foreign-exchange strategist at Commonwealth Bank of Australia, said the Treasury operations showed that the government was turning to unusual tools to manage its borrowing costs. Kong said the steps were being taken amid high public debt and continuing political uncertainty.
Demand for gold and Bitcoin increases
Greater intervention by US economic officials in markets reduced global demand for the dollar and strengthened the shift toward alternative assets. The cryptocurrency market was one of the areas where this flow of capital was particularly evident.
According to CoinMarketCap data, the total value of the global cryptocurrency market, including Bitcoin, rose approximately 7.44 percent over the past 24 hours to reach $2.6 trillion. Bitcoin, the largest cryptocurrency by market capitalization, gained more than 9 percent over the same period. Rising above $78,000, Bitcoin reached its highest level since May 2026.
Gold also traded near its highest level in approximately three months amid the impact of the US Treasury Department's moves. The price of gold rose 1.45 percent to approximately $4,585 per ounce.
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