The dollar index (a measure of the greenback against major currencies) edged up to 99.0 on Monday but stayed near three-month lows after declining for the third time in four weeks. The dollar remained under pressure after the US Treasury doubled buyback operations for longer-dated bonds, while reports suggested Secretary Scott Bessent could use nearly $1 trillion from the Treasury’s General Account to help finance the purchases. Trade tensions with Canada also intensified after Washington imposed 50% tariffs on Canadian goods and Ottawa promised dollar-for-dollar retaliation. President Donald Trump said tariffs on cars, trucks, auto parts and steel would increase to 50% from January 1, 2027. Separately, the US expanded secondary sanctions (penalties targeting third parties) against entities and countries maintaining business ties with Iran. Bessent warned that a major financial institution could be sanctioned this week and suggested China would not be exempt.