The US Dollar Index (DXY) managed to recover its early losses and traded slightly higher near the 98.95 level during the European session on Tuesday, according to FX Street.
This movement kept the index below the key 61.8% Fibonacci retracement level at 99.20, indicating cautious market sentiment around the US Dollar amid ongoing global economic uncertainty.
For Japanese investors, the USD’s modest strength could impact currency pairs like USD/JPY, influencing forex strategies amid ongoing shifts in global monetary policies.