Dollar Rises as Treasury Expands Bond Buybacks Amid Tariff Tensions
The US dollar edged up on Monday after the U.S. Treasury announced it would double the size of its liquidity support buyback operations for longer-dated notes and bonds, citing a need to relieve upward pressure on yields.
However, the report was met with skepticism by some economists, who warned that using the Treasury's General Account could be an 'interesting experiment' but ultimately might not address the underlying debt problem.
The Canadian dollar weakened 0.41% against the greenback to C$1.382 per dollar after Washington imposed 50% tariffs on Canadian goods, with Canada promising to retaliate 'dollar for dollar'.
Bitcoin gained 1.67% to $78,696.12 as markets awaited details of sanctions on Iran and guidance from Federal Reserve Chairman Kevin Warsh's speech in Jackson Hole, Wyoming, this week.