U.S. Dollar Falls 0.3% on Tuesday; Yen Surges to Strongest Since January

The U.S. dollar weakened on Tuesday (Sept 8), taking a breather after gains driven by increased bets on Federal Reserve rate hikes the prior trading day. The Dollar Index (DXY), which tracks the dollar against six major currencies, declined 0.3% to close at 98.86.

The Japanese yen staged a strong rally, reaching 154.22 per dollar by session's end after touching 152.89 earlier—its strongest level against the greenback since Jan. 30. The Canadian dollar also advanced, with USD/CAD falling 0.3% to 1.3779, as Canada's retaliatory tariffs on $27.6 billion in U.S. imports took effect. Market focus now turns to this week's inflation data, which will likely determine the Fed's monetary policy path at its Sept. 16 meeting.