The dollar rose for the second day in a row

The dollar index surpassed 104.3 on Tuesday and rose for 2 consecutive sessions as investors continued to determine the future of US monetary policy in response to the US Federal Reserve (Fed) president's latest statement.

Federal Reserve Chairman Powell said Monday that recent data “gives some confidence” that inflation is returning to target and that the central bank will not wait until inflation reaches 2% before cutting interest rates.

The market has almost factored in interest rate cuts in September, and it is expected that two more interest rate cuts will be implemented by the end of the year.

Meanwhile, in response to the attempted assassination of former US President Donald Trump, the dollar was supported by demand as a safe asset.

Also, since it is expected that Mr. Trump's policies, such as tax cuts, stricter immigration screening, and an increase in import tariffs, etc., will lead to inflation, the prospect of Trump taking office as the second president has strengthened, which also boosted dollar and government bond yields.

The dollar rose across the board, and buying was particularly conspicuous against kiwi (NZD) and yen.