On Tuesday, the US dollar maintained its strength compared to other major currencies as tensions in Russia continued to rise and investors awaited US data that could help predict when future interest rate increases will occur.
In a situation that sent the dollar to a 15-month high against the rouble, Russian President Vladimir Putin claimed on Monday that he allowed an aborted insurrection to go for as long as it did to prevent bloodshed.
After rising by 0.46% on Monday, the dollar index lost 0.22% of its value to 102.510.
After reaching its lowest point since March 2022, the value of the Russian rouble against the dollar dropped by 0.41% to 84.75.
The chief diplomat's remarks on Monday were reiterated by the Japanese Finance Minister, Shunichi Suzuki, who noted that abrupt and one-sided changes were seen in the currency market. This caused the dollar to lose ground against the yen.
Last year, when the yen fell below the 145-to-one dollar mark, Japan intervened to strengthen it. At 143.51 per dollar, the yen gained 0.01%.
Consumer surveys from The Conference Board as well as University of Michigan, along with housing statistics and new orders for durable products are among the US data released this week.
The route moving forward is less certain, although market investors anticipate the Federal Reserve raising its funds target interest rate by 25 basis points in July.
According to Masafumi Yamamoto, a chief currency strategist from Mizuho Securities, we are going to have various US indicators that he thinks will be mixed, thus there won't be any strong momentum, at least today.
The market has not yet fully priced in two additional rate increases. The dollar will rise if the US economic data are on the good side, according to Yamamoto, if the two rate hikes are priced in further.
Prior to Christine Lagarde's statements at the ECB Forum for Central Banking in Sintra, Portugal, the euro gained 0.28% to $1.09365.
At the time of last trading, the value of the pound was $1.2739, up 0.21% from the previous day.
After reaching a seven-month high, the dollar dropped 0.40% to $7.2151 when compared to the overseas Chinese yuan. Upon China's return from vacation on Monday, investors readied themselves for the potential of more support measures.
For the second day running, on Tuesday, the Chinese central bank put the daily yuan fixing higher than the market anticipated. Sources claimed that state-owned banks had been trading dollars on the overseas spot foreign exchange market, fueling rumors that the Chinese government was losing patience with yuan weakening.