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Dollar edges up as U.S. tariff news lifts the greenback
The dollar index rose 0.1% to 98.9, while the Canadian dollar fell 0.4% after Washington imposed 50% tariffs on Canadian goods.
The U.S. dollar edged higher on Monday, reversing part of its recent slide to three-month lows as investors digested new U.S. tariff announcements and awaited details on sanctions involving Iran, according to Reuters.
Reuters reported that U.S. Treasury liquidity actions were also in focus, after the Treasury said it would expand buyback operations for longer-dated notes and bonds. CNBC, citing two senior Treasury officials, said Treasury Secretary Scott Bessent could use funds from the department’s near $1 trillion General Account at the Fed to help fund bond buybacks, rather than relying on short-term bills.
The dollar index rose 0.1% to 98.94, with the euro down 0.1% at $1.1671. Long-end Treasury yields have been rising globally on expectations for solid growth, higher inflation, and concerns over sovereign debt, while the expected buyback expansion has also raised worries the dollar could weaken.
Trade tensions weighed on the Canadian dollar, which dropped 0.4% to C$1.382 per U.S. dollar, its biggest decline since June 17. Washington imposed 50% tariffs on Canadian goods, and Canada said it would retaliate dollar for dollar on the new levies, Reuters added.
Latest closeDollar index 99.64 ▼0.3%