Dollar Weakens Amid Reduced Rate Hike Bets

The US dollar weakened against major currencies on Tuesday after traders scaled back expectations for further Federal Reserve rate hikes.

According to CME Group's FedWatch tool, the probability of a rate hike at the next meeting fell to 12% as of Tuesday, down from 28% a week earlier.

This shift in sentiment pressured the dollar, with the ICE US Dollar Index slipping 0.4% to 103.20.

The yen traded around 145.30 per dollar, holding onto gains from last week when Japanese authorities likely intervened to support the currency.