Dollar Stabilizes as Iran Sanctions and Treasury Buybacks Weigh

The US dollar was relatively stable on Tuesday as investors weighed Washington's expanded sanctions against Iran and efforts to ease pressure on longer-dated Treasury yields.

Despite concerns that a shift in strategy could lead to a debasement of the dollar, the greenback had stumbled late last week after U.S. Treasury Secretary Scott Bessent announced plans to double the size of quarterly repurchases of longer-dated bonds.

A CNBC report on Monday that the Treasury could use part of its cash balance to buy back longer-dated bonds, along with a drop in crude oil prices, sent yields lower.