FX.co ★ Dollar Rises After Two-Day Slide

On Tuesday, the dollar index climbed to approximately 100, marking a rebound after two consecutive days of decline, as investors continued to grapple with trade-related uncertainties. The U.S. dollar also regained strength against the majority of Asian currencies, following a recent spell of selling pressure. The Taiwanese dollar and Malaysian ringgit led the recent gains in the region, with Taiwan’s currency reaching a three-year peak on Monday. This surge has sparked speculation that currency appreciation may be part of broader efforts to facilitate trade negotiations with the United States. Investor focus now shifts to the Federal Reserve’s upcoming monetary policy decision. Although the Fed is anticipated to maintain steady interest rates, markets will carefully analyze Chair Jerome Powell's comments for any indications of potential policy changes, especially in light of escalating tariff tensions and political pressure from President Trump to reduce rates.