Dollar Stuck Near Three-Month Lows Amid U.S. Debt, Iran Risks

The dollar hovered near three-month lows in Asia on Monday as investors weighed U.S. Treasury bond buyback plans against renewed trade and geopolitical risks.

The U.S. Treasury said last week it would at least double the size of its long-end Treasury buybacks to $4 billion per operation, aiming to improve liquidity and contain pressure on long-term yields.

This move initially pushed yields lower but has done little to ease broader concerns over the U.S. bond market, with federal debt surpassing $40 trillion and the federal deficit approaching $1.8 trillion.

Investors were also awaiting Nvidia's results and Federal Reserve Chair Kevin Warsh's speech at Jackson Hole later this week for fresh clues on the outlook for global risk appetite and U.S. interest rates.