New York: The dollar traded sideways on Tuesday after declining for a week, hemmed in by the Federal Reserve’s caution over the economy and as US lawmakers came closer to passing a bill expected to widen the nation’s fiscal deficit. The Australian dollar edged lower after the Reserve Bank of Australia’s cut benchmark interest rates by 25 basis points.
According to Qatar News Agency, the US dollar index has tumbled as much as 10.6% from its January highs, marking one of the sharpest retreats for a three-month period. The greenback was little changed at 144.75 yen, after touching 144.66 on Monday, which was the weakest level since May 8.
The dollar index slid 0.1% after losing 0.6% in the previous session. Meanwhile, the Australian dollar fell 0.5% to $0.6423, trimming a 0.8% gain from Monday. Sterling remained steady at $1.3353, while the euro was flat at $1.1249.