The U.S. dollar traded within a narrow range as expectations for an expanded Treasury bond buyback program countered support from the Trump administration’s tougher Iran sanctions stance. The U.S. Dollar Index settled near 98.9 in late New York trading, down nearly 0.1%, while the 10-year Treasury yield fell nearly 8 basis points to 4.62% and the 30-year yield declined roughly 7 basis points to about 5.16%. Market participants said senior Treasury officials were considering using as much as $1 trillion from the Treasury General Account, or TGA (the government’s account at the Federal Reserve), to finance additional purchases of longer-dated bonds. Treasury Secretary Scott Bessent announced measures including secondary sanctions on countries dealing with Iran in five key areas, including digital assets and shipping, potentially cutting them off from dollar settlement. The remarks briefly supported the dollar, but unclear details limited the impact. The euro rose 0.1% to $1.1675, the pound gained more than 0.1% to $1.3646, and the dollar advanced nearly 0.1% against the yen to ¥159.18. The Canadian dollar firmed nearly 0.1% to C$1.3833 per U.S. dollar. In Asian trading on the 25th, the Taiwan dollar weakened to close the morning session at NT$31.889, while the yen traded around 159.3 per dollar. Markets are focused on Federal Reserve Chair remarks at the Jackson Hole symposium, upcoming U.S. data, further buyback details and guidance on monetary policy. Analysts say formal confirmation of a larger buyback could push long-term yields and the dollar lower, while sanctions-related inflation concerns could limit the fall in yields and support the currency.