Dollar Rises Amid Tariffs, Sanctions, and Bond Buybacks
The US dollar gained strength on Monday after the Trump administration announced tariffs on Canadian goods and expanded sanctions on Iran.
Following President Donald Trump's administration announcement to double liquidity support buyback operations for longer-dated notes and bonds, CNBC reported that Treasury Secretary Scott Bessent could tap the department's near $1 trillion General Account to fund bond buybacks instead of issuing short-term bills.
The dollar briefly pared some gains after the report, along with longer-dated Treasury yields. Brian Jacobsen, chief economist at Annex Wealth Management, questioned whether this move would be effective in addressing rising debt.
The Canadian dollar weakened 0.61% against the greenback to C$1.385 per dollar, its biggest drop since June 17, as trade tensions took their toll on Canada's currency.