Dollar Rises as US Targets Iran's Economy

The US dollar index (DXY00) rose by +0.22% on Monday, driven by safe-haven demand after US Treasury Secretary Bessent unveiled plans to isolate Iran's economy.

The dollar gained strength as investors sought a safe haven following the announcement, which included plans to target five of Iran's 'most vital lifelines,' including digital assets, technology, gold, aviation, and shipping.

Iran's secretary of the Supreme National Security Council responded by warning that any country participating in or supporting the US economic war against the Iranian people would be considered an act of war.

The dollar's gains were limited by a report from CNBC that suggested the Treasury could use the Treasury General Account to fund expanded buybacks of higher-yielding, older government securities.