Dollar Strengthens as US Targets Iran's Economy

The US dollar index rose by +0.22% on Monday due to safe-haven demand after US Treasury Secretary Scott Bessent unveiled plans to isolate Iran's economy.

Bessent announced that the US will target five of Iran's 'most vital lifelines,' including digital assets, technology, gold, aviation, and shipping, and warned countries that they have a defined timeline to shut down economic cooperation with Iran; if they don't, the Treasury will act unilaterally.

The dollar's strength weighed on the euro, which fell by -0.14% on Monday, as well as the yen, which rose by +0.13% against the dollar but continues to suffer from weak interest rate differentials.