The U.S. dollar hovered near two-month lows on Tuesday as investors weighed trade tariff uncertainties and the Federal Reserve's rate cut outlook. The dollar index edged up 0.1% to 106.83 but remained close to Friday’s low of 106.56. Traders are awaiting the Federal Reserve’s January meeting minutes on Wednesday for insights into policymakers’ stance on tariffs and inflation.
Recent data showing U.S. consumer prices rose at the fastest pace in 18 months reinforced the Fed’s cautious approach to rate cuts. ANZ strategists predict no rate cuts until the second half of 2025, expecting 75 basis points of easing, while markets anticipate 40 bps cuts this year.
The Japanese yen held firm at 151.61 per dollar after strong Q4 GDP data and persistent inflation boosted expectations of a Bank of Japan rate hike in July. The yen has gained nearly 4% against the dollar in 2025.
The euro remained steady at $1.04735, and the British pound traded at $1.2608 ahead of Saudi-hosted Ukraine peace talks. The Australian dollar, down 0.17% to $0.63459, stayed near its two-month high of $0.6374, with the Reserve Bank of Australia expected to cut rates by 25 bps. Economists at Commonwealth Bank of Australia noted the AUD could surge over 1% if the RBA holds rates steady.
The New Zealand dollar dropped 0.3% to $0.57195 as markets anticipated a 50 bps rate cut from the Reserve Bank of New Zealand on Wednesday.
Investors remain cautious, focusing on central bank policies, inflation trends, and geopolitical developments.


Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 



