Dollar higher after Iran sanctions, loonie drops after US announces tariff increases
The U.S. dollar experienced gains on Monday, following President Donald Trump's administration announcement to expand sanctions on Iran and impose tariffs on Canadian goods. This move aimed to sever Iran's economic lifelines and put pressure on Tehran to cease attacks on ships in the Gulf. U.S. Treasury Secretary Scott Bessent hinted at utilizing the near $1 trillion General Account to fund bond buybacks, potentially weakening the dollar if successful.
The dollar index rose 0.17% to 98.99, while the Canadian dollar dropped 0.61% against the greenback, signaling possible retaliation from Canada. Canadian Prime Minister Mark Carney expressed openness to a mutually beneficial deal, but only if the U.S. respects Canada's sovereignty. The Japanese yen also weakened against the dollar.
In the cryptocurrency market, Bitcoin saw a 2.05% increase to $78,993.42, marking its largest weekly gain in nearly three and a half years.
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Also reported by 5 other outlets
- Bessent expands threat of secondary sanctions on Iran semafor.com
- US threatens severe sanctions against countries with economic ties to Iran theguardian.com
- Bessent on Iran sanctions: 10 key points from Trump administration’s ‘economic asphyxiation’ plan livemint.com
- U.S. announces expansion of sanctions in 'economic onslaught' on Iran haaretz.com
- US expands Iran sanctions in ‘economic D-Day’ as countries warned over trade ties arabianbusiness.com
