After a shaky Monday, the USD recovered, and Tuesday is unlikely to see much movement. Amid renewed market sentiment, US Dollar gains and remains near the 103.00 mark. The market is pricing in a 100 bps rate cut by year-end. On Tuesday, the US Dollar , measured by the DXY Index, is capitalizing on recent recovery gains near the 103.00 mark subsequent to an improvement in market sentiment.
It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.