Dollar Strengthens as Sanctions against Iran Weigh In

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

US Treasury Secretary Scott Bessent unveiled an expansion of sanctions against Iran, warning countries to cut business ties with it or risk being forced out of the dollar-based financial system.

This move has led some investors to buy dollars in anticipation of potential sanctions, which could potentially reverse the dollar's weakness seen at the end of last week.

The euro and sterling eased from recent highs, while the Japanese yen weakened. The Canadian dollar also declined as the US threatened to raise tariffs on Canadian goods after trade talks collapsed.