$Dollar Near Multi-Month Lows as Debt Concerns Grow

The US dollar is trading near multi-month lows due to concerns about debt and interest rates. In Asia, the currency fell by 0.3% to C$1.3807 per dollar after a collapse in trade talks with the US and the imposition of 50% tariffs on Canadian goods.

The Australian and New Zealand dollars are near three-month highs at $0.7166 and $0.5972, respectively. The euro is trading above $1.16 at $1.1680, while the yen remains strong at 159 per dollar.

Markets are awaiting details of sanctions on Iran, with US Treasury Secretary Scott Bessent set to hold a press conference later on Monday. The Fed's Kevin Warsh will also speak in Jackson Hole, Wyoming, on Friday, and his comments may move the long end of the market more than any data itself.

Analysts at Goldman Sachs say that by attempting to hold down yields, the US Treasury has left the dollar as the remaining release valve for foreign inflows. This could put downward pressure on the currency.