The dollar slipped against most major currencies on Tuesday, hitting a three-month low versus the euro, as expectations of multiple decreases of U.S. interest rates by the Federal Reserve have spurred selling of the U.S. currency.

Growing tensions between Iran and the United States stoked fresh safe-haven buying of yen, which reached its strongest levels against the greenback since early January.

Traders await fresh clues on the Fed’s stance on possible rate cuts, starting as soon as next month.

The dollar was down 0.34% at 106.94 yen after hitting 106.78 yen during Asian trading, which was its weakest since Jan. 3.

The dollar index moved further away from its 200-day moving average at 95.995. Investors are monitoring whether U.S. President Donald Trump and Chinese President Xi Jinping will at least call a truce in their trade war when they meet at a summit of the G20 major economies in Osaka, Japan, later this week.

Source : Reuters