Dollar Soars on Iran Sanctions and Treasury Buybacks
The US dollar strengthened on Tuesday as investors weighed in on Washington's expanded sanctions against Iran and renewed efforts to ease pressure on longer-dated Treasury yields.
US Treasury Secretary Scott Bessent announced an expansion of sanctions against Iran, warning countries to cut business ties with Tehran or risk being forced out of the dollar-based financial system.
Ray Attrill, head of FX strategy at National Australia Bank, said that the announcement 'potentially is one source of a slight reversal of the dollar weakness' that had been observed at the end of last week.
The euro and Swiss franc weakened against the US dollar, while the Canadian dollar dropped for a second day due to the ongoing trade dispute between the US and Canada.
Meanwhile, cryptocurrencies such as Bitcoin continued to rally on fears of currency debasement, with Bitcoin briefly crossing the $80,000 mark for the first time since mid-May.