Dollar Rises Amid Treasury Buybacks and Ongoing Trade Tensions

The US dollar rose slightly on Monday after the Treasury Department announced plans to buy back more long-dated bonds, easing upward pressure on yields. The move came as markets awaited details of sanctions on Iran and a speech by Federal Reserve Chairman Kevin Warsh at Jackson Hole, Wyoming.

The dollar index, which measures the greenback against a basket of currencies, rose 0.11% to 98.94, with the euro down 0.07% at $1.1671. Long-end yields have been climbing around the globe due to a combination of solid economic growth and expectations for rising inflation.

The Canadian dollar weakened by 0.41% against the greenback to C$1.382 per dollar, its biggest drop since June 17, after Washington imposed 50% tariffs on Canadian goods.