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Trump's tariffs strengthen dollar amid Canadian pressure

The US dollar index rose by 0.16% to reach 98.96 points after last week's decline to a three-month low, supported by a recovery from recent losses. At the same time, the Canadian dollar came under pressure following the imposition of a 50% American tariff on Canadian goods, after trade talks between the two countries failed. This led the Canadian currency to decline by 0.6% to 1.3841 Canadian dollars against the US dollar. Additionally, the market is focused on the US Treasury's plans to increase long-term bond buybacks to boost liquidity, amid falling US Treasury yields and expectations of expanding these operations. Investors are also monitoring potential tensions with Iran and upcoming US sanctions announcements.

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