Dollar's Resilience Amidst Global Turmoil

The dollar strengthened due to political issues in France affecting the euro, while concerns over China's economy weakened the yuan. The yen gained on expectations of a Japanese rate hike, and the market is eyeing U.S. employment data and Trump's tariff threats for future dollar movement.

The dollar showed resilience on Tuesday, buoyed by political strife in France that affected the euro, and economic challenges in China that impacted the yuan's value. Amidst these developments, the yen rallied, trading close to six-week highs due to growing speculation about an impending interest rate hike in Japan.

The euro witnessed a significant loss, falling 0.7% overnight, marking a challenging start to December. This decline came as the French government faced potential collapse over budget disagreements. With record-low Chinese bond yields sending the yuan to a four-month low, analysts foresee further dollar strength.

Meanwhile, market participants are anticipating U.S. employment data later in the week to inform their predictions regarding possible Federal Reserve rate cuts. Additionally, President-elect Donald Trump's recent tariff threats add layers of uncertainty, suggesting a complex economic landscape ahead.

(With inputs from agencies.)