The US dollar has held firm since last week as investors assessed dovish remarks from Fed officials that raised expectations for a December rate cut and that should cap the currency's gains.
At 9.50am, the US Dollar Index (DXY) was at 100.149 points, down 0.04% since it opened in early trading on Tuesday in the Asian session.
The US currency, however, rose against the yen, as investors remained on the lookout for Tokyo's intervention to stem the fall in the Japanese currency.
Trading volume was lower than usual due to a holiday in Japan and a short week leading up to the Thanksgiving holiday on Thursday.
The dollar continued its small decline after Fed Governor Christopher Waller said on Monday that current data showed the US jobs market was still weak enough to support another quarter-point interest rate cut at the US central bank's policy meeting on 9–10 December.
The statement followed New York Fed President John Williams' comments on Friday that the U.S. central bank still has the opportunity to cut interest rates "in the near term" without affecting its inflation target.
Following the comments, Fed funds futures increased the probability of a quarter-point rate cut next month to 80 percent, up from 30 percent previously, according to CME's FedWatch tool.
However, several regional Fed governors have said that easing should be delayed until there is stronger evidence that inflation is indeed on track to fall to the Fed's 2% target, given that it remains high.
