Dollar Gains as US Imposes Sanctions, Tariffs on Iran and Canada
The US dollar strengthened on Monday after the Trump administration announced expanded sanctions on Iran and increased tariffs on goods from Canada.
President Donald Trump's government aims to 'sever every economic lifeline' that supports Iran, with the Treasury Department expanding its secondary sanctions in a bid to pressure Tehran into ending attacks on ships in the Gulf.
The dollar index rose 0.17% to 98.99, with the euro down 0.14% at $1.1663. Trade tensions weighed heavily on the Canadian dollar, which weakened 0.61% against the greenback to C$1.385 per dollar, its biggest drop since June 17.
Brian Jacobsen, chief economist at Annex Wealth Management, expressed concerns that using the Treasury General Account to buy longer-term bonds could be an 'interesting experiment,' but warned it might not address the debt problem and could even make it worse in the long term.