The US dollar held steady at 98 on Tuesday, remaining near its lowest level since early October, as investors awaited the Federal Reserve’s December meeting minutes for further clues on the path of interest rates. Markets are currently pricing in two more rate cuts in 2026, although Fed officials were divided over their next move, with most foreseeing only one reduction. Meanwhile, data on Monday showed that pending home sales jumped 3.3% in November, beating forecasts of a 1% increase, signaling improving housing demand. However, the Dallas Fed manufacturing survey indicated weaker business conditions in December. So far this year, the dollar has declined 9.6%, marking its sharpest fall since 2017. The greenback’s weakness reflects a combination of factors, including expectations of Fed rate cuts, narrowing interest rate differentials with other major currencies, President Trump’s chaotic tariff policies, and concerns over fiscal deficits and the Fed’s independence.
