Dollar Under Pressure Amid Trade Tensions with Iran and Canada

The US dollar held steady on Tuesday, but remains at risk of further declines as investors parse Washington's expanded sanctions against Iran and renewed efforts to ease pressure on longer-dated Treasury yields.

Currency traders also processed the implications of the trade dispute between the U.S. and Canada, which saw the Canadian dollar weaken for a second day against its US counterpart, with the US dollar up 0.1 per cent at C$1.3860.

According to David Morrison, a senior market analyst at Trade Nation, Trump wants borrowing costs down and views the Treasury's intervention as a way to push yields at the longer end down.