On Tuesday, the dollar index declined toward 98, marking its lowest level since early October. This movement is largely attributed to increased anticipation of further interest rate cuts by the Federal Reserve. Current market forecasts suggest two quarter-point reductions in 2026, a sentiment echoed by President Trump's advocacy for lower borrowing costs. Nevertheless, officials within the Fed remain sharply divided over future monetary policy directions. On Monday, Governor Miran cautioned about heightened recession risks should monetary policy fail to adapt. Conversely, Fed President Hammack highlighted on Sunday that the current policy stance is appropriately positioned for a pause, enabling time to evaluate the effects of the 75-basis-point cuts implemented this year. Additionally, the dollar faced pressure from a surge in precious metals driven by safe-haven demand amid escalating tensions between the US and Venezuela. The dollar also notably weakened against the Japanese yen following the Bank of Japan's decision to raise its policy rate to a three-decade high.