The euro was down 0.18% at $1.1751, while the yen weakened 0.2% against the U.S. currency to 156.39 per dollar

The dollar advanced on Tuesday, maintaining gains after the release of minutes from the U.S. central bank’s December meeting, as investors attempt to parse the path of monetary policy.

Year-end holidays have kept trading volume light, and analysts cautioned not to put too much weight on market moves over recent days, however. Still, the U.S. dollar is on track for its worst performance since 2017 with a fall of nearly 10%.

According to minutes of the latest two-day session from the central bank at its Dec. 9-10 meeting, the bank agreed to reduce rates only after a deeply nuanced debate about the risks facing the U.S. economy right now.

New projections issued after the December meeting show the bank only expects one rate cut next year, while language in the new policy statement indicated the bank would likely remain on hold for now until new data shows that either inflation is again falling or unemployment is rising more than anticipated.

Markets are currently pricing in about 50 basis points of cuts next year.

We don’t have any direction in Fed policy and so you’re seeing that reflected in the dollar and the currency rates, you’re seeing it reflected in the interest rates as well in the Treasury rates, so the market doesn’t have a lot to work with right here, said Joseph Trevisani, senior analyst at FX Street in New York.

If we’re looking for movement in the new year in the dollar and the currencies and maybe even interest rates, we’re going to have to start looking to the economy and see if that will move things, he said.

The dollar index rose 0.19% to 98.19, while the euro was down 0.18% at $1.1751 on the day – but up more than 13% on the year.

Sterling weakened 0.3% to $1.3467 but is up nearly 8% against the dollar for 2025.

The yen weakened 0.2% against the U.S. currency to 156.39 per dollar, although the Japanese currency has firmed in recent days to move away from levels that drew statements from officials in Tokyo last week and increased market expectations of a possible intervention by the Bank of Japan.