The US Dollar Index remained resilient near the 99.60 level on Tuesday, supported by escalating tensions around the strategic Strait of Hormuz, according to FX Street. This firm tone in the US Dollar saw most major currencies weaken against it during the session.
Meanwhile, prices for gold and oil both declined, reflecting cautious market sentiment amid geopolitical concerns. The movements suggest that investors are favoring the US Dollar as a safe-haven amid regional uncertainties.
For Japanese markets, the steady US Dollar could influence FX trading strategies, particularly in USD/JPY pairs, as risk sentiment remains sensitive to developments in the Middle East.