The dollar index is seen reclaiming back 99 mark on Tuesday, supported by safe-haven demand as the US moved to cut Iran off from the global financial system. Treasury Secretary Scott Bessent announced plans on Monday to isolate Iran through sanctions targeting countries doing business with the Islamic Republic. Meanwhile, the Treasury Department announced an expansion of its buyback program for long-dated government debt in an effort to contain rising borrowing costs, limiting upside in the DXY. Markets now look forward to the release of the US Personal Consumption Expenditures (PCE) Price Index on Wednesday. Fed Chair Kevin Warshs keynote address at the annual Jackson Hole Symposium on Friday will also be scrutinized for more interest rate cues, which will influence the USD. Among basket currencies, EUR/USD and GBP/USD are both edging lower, in line with gains in dollar and quoting at $1.1666 and $1.3525 respectively.
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