Dollar Eases Amid Iran Sanctions Uncertainty and Bond Yield Concerns

The US dollar experienced a slight decline on Tuesday as investors assessed the impact of expanded US sanctions on Iran and efforts by the US Treasury to ease pressure on long-term government bond yields.

The euro rose by 0.1% to $1.1668, inching closer to its three-month high reached last week. Sterling also gained 0.1% to $1.3639, approaching a six-month high.

The Canadian dollar remained relatively stable at C$1.3844 per US dollar after falling 0.6% in the previous session due to Washington's threat to raise tariffs on Canadian goods following trade talks breakdown.

The yen edged up to 159.21 per dollar, but still remained above its multi-decade low of around 164.