Dollar under pressure as oil prices slump, Australia rate decision awaited

The US dollar index edged down to 101.76 on Tuesday after reaching a one-month low in the previous session, Business Recorder reported. Brent crude had fallen by more than 7% on Monday, its steepest daily decline in months, as Tehran said discussions with Washington on ending their eight-month conflict were continuing.

Lower oil prices eased inflation worries and pushed longer-dated US Treasury yields down in the prior session. The 10-year yield was at 4.9145% and the 30-year yield at 5.2868%, while the dollar faced mixed forces from weaker risk sentiment linked to an AI-driven share-market decline and concerns around US midterm elections.

Australia’s central bank was due to announce its rate decision on Tuesday. Markets expected a 25-basis-point increase to 4.85%, while the Australian dollar was little changed at $0.7002; the euro traded at $1.1185 and the yen at 157.915 per dollar.