The U.S. dollar edged higher on Tuesday as geopolitical tensions in the Middle East and investor caution ahead of major central bank meetings kept most currencies range-bound. Market sentiment remained risk-averse, with attention turning to the Bank of Japan (BOJ) and the U.S. Federal Reserve.
The BOJ is expected to maintain interest rates at its policy meeting, while investors await comments from Governor Kazuo Ueda regarding inflation and potential adjustments to bond-buying. The yen slightly strengthened to 144.70 per dollar, recovering modestly after earlier losses.
Carol Kong, currency strategist at Commonwealth Bank of Australia, noted the BOJ’s role as the next key market driver, especially amid Japan’s inflation and trade concerns. Prime Minister Shigeru Ishiba’s recent tariff discussions with U.S. President Donald Trump ended without agreement, according to Fuji TV.
Meanwhile, the dollar gained on safe-haven demand as tensions escalated between Iran and Israel. Trump’s early departure from the G7 summit and his call for evacuation from Tehran underscored the crisis. Still, DBS analysts said global spillover risk remains “manageable” for now.
The risk-sensitive Australian dollar fell 0.27% to $0.6507, while the New Zealand dollar slipped 0.17% to $0.6049. The euro dipped 0.1% to $1.1545, and the British pound declined 0.09% to $1.3563. The U.S. dollar index edged up to 98.23.
Looking ahead, the Fed’s policy decision on Wednesday is the week’s major event. While rates are expected to remain steady, investors will focus on the dot plot and economic projections for clues on future policy. Ronald Temple of Lazard predicts no rate cuts this year, diverging from market expectations of two.
Trump also signed a deal to reduce certain tariffs on British imports, advancing U.S.-UK trade negotiations.


Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom
Thailand Inflation Remains Negative for 10th Straight Month in January
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 



