The US dollar declined as the Treasury's bond buyback program eased financial conditions and reduced Treasury yields.

This shift made it profitable for investors to borrow in low-rate currencies and invest in high-yield emerging markets.

Nur Cristiani, head of Latin America markets at JPMorgan Private Bank, said at an international finance forum that a carry trade mechanism of borrowing dollars cheaply and investing in Colombia's overnight interest instruments has returned approximately 27% since the start of the period.

Ed Dowd, writing for 'Beyond the Narrative' Substack, argues that the Treasury's buyback program is a recycling operation that cannot create money or expand the monetary base like the Federal Reserve.