Dollar Stalls as Fed Signals Remain Murky

The US dollar has been trading in a narrow range as investors struggle to interpret conflicting signals from the Federal Reserve regarding future interest rates.

Market participants remain uncertain about the Fed's next move, with some policymakers hinting at further rate hikes to combat inflation and others suggesting a pause to assess previous tightening measures.

The dollar index hovered near 104.00 as of Tuesday morning in London, reflecting this ambiguity.

The European Central Bank's recent 25-basis-point rate hike has been absorbed by the market, with the euro edging slightly higher against the dollar at around $1.0850.