Dollar Bounces Back Amid Debt Concerns, Iran Sanctions Loom

The US dollar rebounded on Monday from its nearly three-month low as markets remained cautious following the US Treasury's pledge to increase long-term government debt purchases.

Traders are awaiting details of sanctions on Iran and speeches from monetary policy officials in the United States and Japan this week.

The US Dollar Index rose 0.2% to 98.9 by 11:36 GMT, while trade tensions weighed on the Canadian dollar, which fell 0.5% to C$1.3836 per US dollar after Washington imposed 50% tariffs on Canadian goods and Canada responded with similar measures.

The euro traded at $1.1665, slightly lower on the day but remaining close to the three-month high reached last week, while sterling edged lower to $1.3628, although it remained near Friday's six-month high of $1.3675.