Dollar Rallies Amid Iran Sanctions, Crypto Surge
The US dollar regained some strength on Tuesday as investors weighed the implications of expanded sanctions against Iran and renewed efforts to ease pressure on longer-dated Treasury yields.
US Treasury Secretary Scott Bessent unveiled an expansion of sanctions against Iran, warning countries to cut business ties with it or risk being forced out of the dollar-based financial system. This move potentially reversed some of the dollar's weakness seen at the end of last week, according to Ray Attrill, head of FX strategy at National Australia Bank.
The euro was down roughly 0.1% at $1.1655, while sterling eased from a six-month high. The Japanese yen weakened to 159.32 per dollar, but still remained well off its multi-decade low of about 164.
Cryptocurrencies bucked the dollar's strength as debasement fears fueled momentum, with Bitcoin crossing the $80,000 mark for the first time since mid-May. The rally was driven by concerns over inflation and currency devaluation.