Dollar Slips Amid Sanctions Concerns and US Yield Outlook

The US dollar declined on Tuesday as investors weighed the impact of expanded sanctions against Iran and efforts by the US Treasury to ease pressure on long-term government bond yields.

Despite this decline, the dollar remained broadly supported. The euro rose 0.1% to $1.1668, nearing a three-month high reached last week, while sterling gained 0.1% to $1.3639, approaching a six-month high.

The Canadian dollar was little changed at C$1.3844 per US dollar after falling 0.6% in the previous session following Washington's threat to raise tariffs on Canadian goods after trade talks broke down.