Dollar Rises on Iran Sanctions and Canada Tariffs

The US dollar strengthened after the Trump administration expanded sanctions on Iran and announced tariffs on goods from Canada, causing the Canadian dollar to drop.

The greenback rose 0.17% to 98.99, with the euro down 0.14% at $1.1663, according to the dollar index.

Treasury Secretary Scott Bessent announced an expansion of secondary sanctions in hopes that they will 'sever every economic lifeline' that sustains Iran, adding to pressure on Tehran to end its attacks on ships in the Gulf.

The US Treasury Department also reported that it would double the size of liquidity support buyback operations for longer-dated notes and bonds, with Bessent considering tapping the department's near $1 trillion General Account to help fund bond buybacks instead of issuing short-term bills.