The U.S. dollar index held near a three-month low on Monday, with the greenback little changed at 98.83 by 04:44 GMT, after falling nearly 1% in the prior week.
Asian currencies traded within a tight range, with the Japanese yen edging down 0.1% to 158.89 per dollar, while the Canadian dollar rose 0.2% following the collapse of U.S.-Canada trade talks. The U.S. had imposed 50% tariffs on $20 billion of Canadian goods, prompting Ottawa to announce dollar-for-dollar retaliatory tariffs set to take effect on Sept. 8.
The U.S. Treasury said it would at least double the size of its long-end Treasury buyback operations to $4 billion per operation, a move aimed at improving liquidity and easing pressure on long-term yields amid concerns over heavy borrowing needs. U.S. federal debt has surpassed $40 trillion, while the federal deficit approaches $1.8 trillion.
Oil prices slipped more than $1 a barrel as markets braced for new U.S. sanctions targeting Iranian oil exports, raising risks to global energy supply through the Strait of Hormuz. The U.S. Treasury Secretary is expected to outline further sanctions later on Monday.
The Australian dollar ticked 0.1% lower, while the South Korean won fell 0.3%. The Chinese yuan and Indian rupee were little changed. Regional currencies remained subdued as investors awaited key events later in the week, including Nvidia’s earnings and Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole. Bank of Japan Deputy Governor Ryozo Himino is also scheduled to comment.
