Precise Investors Editorial Team
The dollar index added 0.1% to stand at 99.07
The U.S. dollar regained some strength on Tuesday, as investors parsed Washington’s expanded sanctions against Iran and renewed efforts to ease pressure on longer-dated Treasury yields, while cryptocurrencies extended a rally on debasement fears.
U.S. treasury secretary unveiled an expansion of sanctions against Iran on Monday, telling countries to cut business ties with it or risk being moved out of the dollar-based financial system.
That potentially is one source of a slight reversal of the dollar weakness that we had at the end of last week, Ray Attrill, head of FX strategy at National Australia Bank, said in a podcast.
The suggestion being that, maybe if you’re going to be sanctioned and you’re not going to have access to U.S. dollars, then you better buy some dollars first before that happens, he said.
The euro was down around 0.1% at $1.1655, on track for a third day of decline after hitting a three-month high last week. Sterling also eased from a six-month high, last at $1.3624.
The yen weakened to 159.32 per dollar, having given back most of its intervention gains but still higher than a multi-decade low of around 164.
The dollar index added 0.1% to stand at 99.07. That extended a gain of 0.16% overnight, further lifting it from three-month lows amid a revived debasement trade.
The Canadian dollar weakened 0.1% to $1.3860, extending a decline of 0.6% in the previous session, as the U.S. threatened to raise tariffs on Canadian goods after trade talks collapsed.
The New Zealand dollar and the Australian dollar were flat, trading at $0.5955 and $0.7152, respectively.
However, cryptocurrencies bucked the dollar’s strength as debasement fears fuelled momentum. Bitcoin crossed the $80,000-mark for the first time since mid-May, taking its gains for the month to almost 30%.
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