The dollar index edged up to 99.0 on Monday but remained near three-month lows after its third weekly decline in four. The greenback stayed under pressure following the US Treasury’s decision to double buyback operations for longer-dated bonds, with reports suggesting Secretary Scott Bessent could use nearly $1 trillion from the Treasury’s General Account to help fund them. Meanwhile, trade tensions with Canada intensified after Washington imposed 50% tariffs on Canadian goods, with Ottawa pledging dollar-for-dollar retaliation. President Donald Trump also said tariffs on cars, trucks, auto parts and steel would rise to 50% from January 1, 2027. On the geopolitical front, the US expanded secondary sanctions targeting 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.