The US dollar advanced against all Group-of-10 currencies on Monday, with the Canadian dollar suffering the steepest drop. The greenback maintained its firm footing both leading up to and following the announcement by Treasury Secretary Bessent of a plan to isolate Iran's economy.

The Bloomberg Dollar Spot Index rose 0.2%, partially recovering last week's 0.8% decline and reaching its intraday high. "You're going to see a wave of sanctions come out after today, and you should expect that pace to continue," Bessent told a press briefing.

Treasuries ticked higher as market attention this week shifts toward remarks from Bessent and subsequently Federal Reserve Chairman Kevin Warsh. The USD/CAD pair climbed 0.7% to 1.3856, after touching 1.3732 on Friday, its weakest level since May. The move followed Trump's pledge to double tariffs on Canadian steel, automobiles, trucks, and auto parts starting next year.

Elsewhere, the euro slipped 0.2% against the dollar to 1.1659, while sterling eased 0.1% to 1.3628, having reached a six-month high of 1.3676 on Friday.