Dollar Gains Strength Amid Sanctions Against Iran
The US dollar gained strength on Tuesday as investors weighed Washington's expanded sanctions against Iran and efforts to ease pressure on longer-dated Treasury yields. U.S. Treasury Secretary Scott Bessent announced an expansion of sanctions against Iran, warning countries to cut ties with Tehran or risk being forced out of the dollar-based financial system.
This move potentially reversed some of the dollar's weakness from last week, according to Ray Attrill, head of FX strategy at National Australia Bank. He suggested that countries facing sanctions may choose to buy dollars before they lose access to them.
The euro was softer at $1.1659, with the Swiss franc weakening to 0.8039 per dollar. The Canadian dollar also weakened against its US counterpart due to ongoing trade tensions between the two nations.