The US dollar is under pressure on the weekly chart, Treasury's buyback of US Treasuries sparks confidence concerns, yen strengthens boosted by inflation data.

(1) The US dollar continued its weakness on Friday and is expected to end the week lower. Investors are concerned that the US Treasury's efforts to reassure the bond market may ultimately undermine confidence in the dollar. The Treasury Secretary indicated a possible further expansion of US Treasury repurchase operations, but the market worries that attempts to curb long-term yields may shift pressure to the dollar and other areas.(2) The euro edged higher to around $1.1694, on track for its fourth consecutive weekly gain. The pound remained steady at around $1.3652, staying near its highest level since May. The US dollar index hovered near a three-month low, with a cumulative weekly decline of about 0.94%.(3) Analysts pointed out that even slight hints of financial repression and unconventional policies are negative factors for the dollar. The latest developments have further increased uncertainty in the outlook for the foreign exchange market. Investors are already facing multiple variables such as geopolitical situations and interest rate directions, creating a tense atmosphere ahead of next week's Jackson Hole Symposium. The market will closely watch the Federal Reserve Chair's speech to look for policy clues.(4) The yen rose to about 158.81 against the US dollar. Japan’s core inflation accelerated in July, providing further justification for the central bank to raise rates. Although the joint intervention by the US and Japan last month supported the yen, investors believe that unless the Bank of Japan tightens monetary policy, the yen may still come under renewed pressure and weaken.