Dollar trading near multi-month lows, restrained by debt nerves

According to Business Recorder, the dollar hovered near multi-month lows on Monday, unsettled by the US Treasury's plan to increase buybacks of long-dated bonds. Traders were also waiting for details of new sanctions on Iran and for policy speeches in the United States and Japan this week. The Treasury said it would double long-end buybacks to $4 billion per operation after 30-year yields reached almost two-decade highs last week.

Elsewhere, the Canadian dollar eased 0.2 per cent to C$1.3798 per dollar after trade talks with Washington broke down and the US levied 50 per cent tariffs on Canadian goods. Canada hit back with matching measures. The Australian and New Zealand dollars held just below three-month highs at $0.7171 and $0.5979, while the euro stood at $1.1685 and the yen held below 159 per dollar.

Market participants are watching Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole on Friday for guidance on US interest rates. Bank of Japan deputy governor Ryozo Himino is due to speak on Thursday, ahead of next month's policy meeting.