Investors adopt a cautious stance amid geopolitical risks and light economic data, keeping the USD Index stable around 101.00.
The US Dollar Index (USD) fluctuates near 101.00 on Tuesday as markets remain cautious due to Middle East tensions and a lack of high-impact economic releases. The greenback initially strengthened but erased gains as risk sentiment improved, driven by bullish Wall Street performance.
Earlier, the USD showed resilience against major currencies but struggled to sustain momentum. The ADP Employment Change 4-week average and US Goods Trade Balance data for May are due later in the day, though neither is expected to significantly shift market sentiment.
Federal Reserve Governor Christopher Waller recently reiterated the central bank’s commitment to a 2% inflation target and flexible forward guidance, reinforcing policy stability. The USD was strongest against the Australian Dollar in recent trading sessions.