Key Points
SINGAPORE (Reuters) The dollar edged higher on Tuesday and major currencies traded sideways as lingering concerns over tensions in the Middle East partially offset investors optimism for imminent U.S. interest rate cuts...
Geopolitical risks kept early currency moves subdued, though fears of an escalating conflict following Israel and Hezbollahs major missile exchange over the weekend petered out...
The yen was last 0.2% lower at 144.82 per dollar, giving up some of its safe haven gains from the previous session which saw it rise to a three-week high of 143.45 per dollar...
Still, major currencies were holding near milestone highs and the dollar near its lowest level in over a year, helped by the likelihood of a U.S. rate cut in September after Federal Reserve Chair Jerome Powell more or less nodded to such a move in his Jackson Hole speech on Friday...
The Feds aggressive rate-hike cycle and expectations of how much further U.S. rates could rise had been a huge driver of the dollars strength over the past two years, keeping other currencies, particularly the Japanese yen, under pressure...
