The dollar index rose to 97.12 after a 0.2% gain in the previous session

The dollar held gains on Tuesday as markets awaited signals, expected later this week, about the potential timing of rate cuts by the U.S. central bank.

Key economic events lie later in the week, with minutes from the central bank’s last meeting and figures on U.S. gross domestic product.

We’re quite positive on the U.S. economy, said Kristina Clifton, senior currency strategist at Commonwealth Bank of Australia in Sydney. The market is currently pricing a high chance of a June interest rate cut, which is also our view. However, we differ from the market in that we expect a follow-up cut in July.

We judge that the most important driver of the dollar through 2026 will be the narrative of U.S. exceptionalism, she added.

The dollar index rose to 97.12 after a 0.2% gain in the previous session. The euro slipped 0.1% to $1.184.

The yen firmed 0.3% to 153.04 per dollar. Sterling weakened 0.11% to $1.3607.

Data on Friday showed U.S. consumer prices increased less than expected in January, giving the central bank additional leeway for policy easing this year. Money market traders are pricing about 59 basis points of easing for the rest of this year.

The Fed’s Open Market Committee issues minutes from its January meeting on Wednesday. Other key data points this week include inflation readings for Britain, Canada and Japan, as well as preliminary readings of global business activity on Friday.

The Australian dollar weakened 0.1% versus the dollar to $0.706. New Zealand’s kiwi was little changed at $0.6029 ahead of the Reserve Bank of New Zealand’s policy meeting on Wednesday, when it is widely expected to hold rates steady.