US Dollar Hits Lows Ahead of Iran Sanctions Announcement

The US dollar is trading near multi-month lows as investors await an announcement from Treasury Secretary Scott Bessent regarding new US measures targeting Iran. Market participants are monitoring the upcoming statement for signs of geopolitical escalation, which could trigger increased safe-haven demand and provide support for the currency.

Beyond geopolitical tensions, investors are focusing on upcoming economic indicators to determine the Federal Reserve's next moves. Key data points include the second estimate of second-quarter GDP and core PCE inflation data, both scheduled for release on Wednesday.

Further clarity on inflation risks and the broader monetary policy outlook is expected later in the week. Federal Reserve Chair Kevin Warsh is scheduled to deliver remarks at the Jackson Hole Symposium, where he is expected to provide guidance on the central bank's future policy trajectory.