The US dollar was steady on Tuesday as markets awaited Fed Chairman Jerome Powell's speech on the economic outlook, amid mixed signals from Fed officials. The US dollar index was flat at 97.34 after sharp fluctuations, while the euro and pound sterling each recorded small declines.
Investors were also watching the impact of President Donald Trump's economic policies as well as core personal consumption expenditures (PCE) data due out this weekend. Money markets are pricing in a near 90% chance of a rate cut in October, while US political uncertainty over budget talks added to investor concerns.
In Europe, market reactions were mixed after data showed eurozone business activity growing, while France suffered its sharpest contraction since April. The Swedish currency strengthened after the Riksbank made a hawkish rate cut, while the dollar was flat against the yen.
Elsewhere, the US dollar fell nearly 4.5% against the Argentine peso after the US statement on monetary support, while the Indian rupee hit a record low on domestic and global factors. Gold, meanwhile, surged to new highs before falling, reflecting ongoing market uncertainty.
