Dollar Dips as Currency Storm Brews: Geopolitical Jitters, Fed Decisions, and Yen Watch

The U.S. dollar fell for the fourth consecutive day amid speculation of coordinated currency intervention by the United States and Japan. The dollar's decline is fueled by uncertainties in U.S. politics and forthcoming Federal Reserve decisions, with traders closely monitoring potential interventions affecting the yen.

The U.S. dollar continued its downward trend for a fourth consecutive day on Tuesday as traders remained vigilant ahead of potential coordinated currency interventions by the United States and Japan. This decline comes before Wednesday's pivotal Federal Reserve interest rate decision.

Geopolitical concerns and the unpredictable nature of President Donald Trump's policymaking have put significant pressure on the dollar this month. The dollar fell 0.48% against a basket of currencies, hovering near a multi-year low from September.

The yen has seen gains recently, sparking speculation of forthcoming rate checks from the U.S. and Japan. Despite no official confirmation, there have been reports suggesting dialogues between the U.S. and Japanese authorities, stirring investor anxieties over possible interventions.

(With inputs from agencies.)