The dollar index inched up to 99.0 on Monday but hovered near three-month lows after recording its third weekly loss in four weeks. The greenback remained under pressure following the US Treasury’s move to double its buyback operations for longer-dated bonds, amid reports that Secretary Scott Bessent could tap nearly $1 trillion from the Treasury General Account to help finance the program.
At the same time, trade tensions with Canada escalated after Washington imposed 50% tariffs on Canadian goods, prompting Ottawa to vow dollar-for-dollar retaliation. President Donald Trump also announced that tariffs on cars, trucks, auto parts, and steel will rise to 50% starting January 1, 2027.
On the geopolitical front, the US broadened its secondary sanctions, targeting entities and countries that continue doing business with Iran. Bessent cautioned that a major financial institution could face sanctions as early as this week and indicated that China would not be spared.
