The U.S. Dollar slipped on Tuesday after advancing earlier in the day and re-approaching the one-year high of 95.44 hit on July 19.
The U.S. Dollar Index, which tracks the greenback against a basket of currencies was down 0.02% at 95.17 by 1:30AM ET (05:30 GMT). Overnight, it edged close to the more-than-one-year high of 95.652 reached on July 19, before giving up some of its gains towards the end of the session.
Traders believe recent trade tensions between the U.S. and China may be supporting the dollar, as tariffs may narrow the U.S. trade deficit.
“There is still a lot of uncertainty on the tariffs. We don’t know exactly how much will be implemented and how bad it can get,” Shinichiro Kadota, senior FX and rates strategist at Barclays in Tokyo, told Reuters on Tuesday.
