Dollar Range-Bound Amid Shifts in Fed Hike Expectations

The US dollar traded in a narrow range against major currencies on Tuesday as investors continued to price in a dovish response from the Federal Reserve.

This follows recent soft economic data, including unexpected job losses last month and mild inflation readings.

As a result, market expectations for an interest rate hike by the Fed have shifted, with a near-70% chance of a quarter-point increase in September now priced in.