Dollar Faces Fresh Pressure as Investors Watch Bonds and Fed

NEW YORK — The U.S. dollar remained near multi-month lows on Monday as investors confronted growing uncertainty across bond markets, inflation and U.S. economic policy.

Market attention is focused on the U.S. Treasury's plans to increase purchases of longer-term government bonds, while traders are also awaiting details of new sanctions against Iran. These developments are adding to volatility across currency and fixed-income markets.

The dollar's weakness comes as investors reassess the outlook for U.S. interest rates and government debt. Treasury yields have remained elevated, increasing borrowing costs for businesses and consumers.

Another major focus this week will be Federal Reserve Chair Kevin Warsh's appearance at the Jackson Hole economic symposium. Investors are looking for signals about the Fed's approach to inflation and future interest-rate decisions.

The market is also preparing for the release of the U.S. Personal Consumption Expenditures inflation data, a closely watched measure that could influence expectations for Federal Reserve policy.

For American businesses, the combination of elevated borrowing costs, currency volatility and uncertain interest-rate expectations could make the coming weeks especially important for investment and financing decisions.