The dollar edged higher on Tuesday as traders assessed the impact of tariff tensions and prospective U.S. rate cuts. Meanwhile, the Australian dollar stayed near its two-month peak following the Reserve Bank of Australia’s decision to cut interest rates by 25 basis points to 4.10%, the first cut since the 2020 pandemic.
This move reflects global uncertainty but indicates caution regarding further easing. RBA officials, including Michele Bullock, emphasized a measured approach, while analysts like Prashant Newnaha project additional cuts in May and August.
Investor focus shifts to the Federal Reserve’s January meeting minutes release. With growing economic concerns, ANZ strategists suggest a prolonged pause, even as inflation grows. In Asia, the yen weakened, while the euro and sterling saw slight dips amid geopolitical tensions and upcoming central bank meetings.
(With inputs from agencies.)
