US sanctions on Iranian oil and the dollar in motion

The dollar hit deep against other major currencies in Asian trade on Tuesday, as the Canadian dollar was buoyed by higher crude oil prices as a result of the US plan to tighten pressure on Iranian oil exports from the US dollar. next month.

The Australian and New Zealand financial markets have reopened after the long Easter holidays and are expected to reopen across Europe later in the day.

The dollar index versus a basket of six key rivals was slightly higher, at 97.345, still nearing the peak of 979 reached in 2019, early March.

The greenback has strengthened in recent weeks as US 10-year Treasury yields rise and the US economy shows signs of strength after a weak start to the year.

Overnight data showed that sales of existing homes in the United States declined more than expected in March due to supply constraints, and new home sales figures will be released later.

These may provide some indication of the state of the US economy, but the report on the gross domestic product to be released Friday should give a clearer picture.

"Investors will look for increased volatility in the coming days, as traders return to their offices and the US earnings season progresses," said Nick Twidale, chief operating officer at Rakuten Securities Australia. in Sydney.

"This week could clearly indicate whether the dramatic turnaround in global central banks, and especially the Fed, has been sufficient in recent months to change the dynamics of global growth," he said in a note.

The dollar edged down 0.1% to 111.84 yen, after peaking last year's 112.17 hit last Wednesday.

The greenback's movements against the euro and the British pound were modest, with the shares remaining generally stable at $ 1.1225 and $ 1.2975, respectively.

The Canadian dollar remained firm after oil prices hit record highs of nearly six months overnight following Washington's announcement of the removal of waivers next month for eight countries to buy Iranian oil without to be imposed American sanctions.

With soaring oil prices, one of Canada's top exports, the loonie has stood at $ 0.7492, after gaining more than a third of a percent during the session former.