The US dollar hovers near multi-month lows as the market awaits new sanctions on Iran and central bank speeches.

1. On Monday, the US Dollar Index consolidated near multi-month lows, with market sentiment disrupted by the US Treasury's expansion of its long-term bond buyback program. US Treasury Secretary Bessent will announce details of the "most severe sanctions in history" against Iran later today, with market focus on whether these sanctions will extend to China. Iran's Foreign Minister described the new US sanctions threat as a "sign of desperation." 2. The Canadian dollar fell 0.2% against the US dollar in early trading to 1 USD = 1.3791 CAD, following a breakdown in US-Canada trade talks and mutual tariff increases. The Australian dollar and New Zealand dollar were quoted at 0.7165 and 0.5971 USD respectively, near three-month highs, supported by a softer US dollar and improved risk appetite. 3. After the US 30-year Treasury yield hit a near 20-year high, the Treasury announced last week that it would double the size of its long-term bond buyback program to $4 billion per operation. The head of investment strategy at AMP stated that the Treasury's attempt to artificially suppress long-term yields is rekindling dollar depreciation trades, supporting the Australian dollar above $0.71. 4. Market participants are also watching Federal Reserve Chair Walsh's speech at Jackson Hole on Friday for clues on the interest rate outlook. The speech by Bank of Japan Deputy Governor Ryozo Himino on Thursday is also in focus, seen as an important indicator ahead of next month's policy meeting. Commonwealth Bank of Australia strategists expect that even if Himino delivers hawkish remarks, their damping effect on USD/JPY will be limited, and movements in the US bond market will remain the more important factor.