US Dollar strengthens as Treasury Secretary announces stricter Iran sanctions, lifting gold and pressuring risk-sensitive currencies.
The US Dollar Index (DXY) rose above 99.00 for the first time since last Wednesday, driven by safe-haven demand after US Treasury Secretary Scott Bessent announced a “zero leakage” enforcement of Iran sanctions. A major financial institution faces sanctions within days, amplifying risk aversion.
EUR/USD fell below 1.1700, while GBP/USD hovered near 1.3630 with no UK data to support the Pound. USD/JPY held above 159.00, and AUD/USD retreated toward 0.7150 ahead of Australian inflation data. Gold surged near $4,650 per troy ounce, though crude oil prices slipped despite geopolitical tensions.
Traders await Germany’s IFO business surveys and a series of US economic releases later Tuesday, which could further influence market sentiment.