The US dollar held its ground on Tuesday as global markets awaited the release of crucial US inflation data.
Traders are positioning for the print, which will provide further clarity on the Federal Reserve’s policy path amid ongoing economic uncertainty.
Oil prices climbed during the session, supported by escalating tensions in the Middle East.
The geopolitical risk premium is adding a layer of complexity to the macroeconomic backdrop, potentially complicating the inflation outlook if energy costs remain elevated.
Meanwhile, the Japanese yen continued to trade at a soft tone.
The currency remains under pressure near multi-decade lows, with markets cautious about the possibility of official intervention.