Janet Yellen sounds fears of US dollar being weakened by States' use of sanctions

Countries deterred from greenback trades

US Secretary of the Treasury Janet Yellen said she is concerned about the strength of the US dollar going forwards, after widespread implementation of sanctions by the country has pushed other financial institutions to seek trades in other currencies.

Speaking before the House Financial Services Committee last week (9 July) Yellen was asked about her biggest concerns around foreign institutions regarding the US, one of which was the "protection of the dollar". Fed postpones rate cut until 'greater confidence' in sustainable inflation levels She said: "We have very powerful sanctions that are that are available because of the important role of the dollar in international transactions, the ability to cut off foreign banks or other businesses or individuals from the ability to transact through the US Financial system and to participate...