The dollar rose slightly for the second consecutive day, as foreign exchange traders bet that the Federal Reserve's interest rate cut would be limited in scope.

The US dollar has seen a slight increase for the second consecutive trading day, with forex traders betting that the Federal Reserve will find it difficult to implement three rate cuts in 2026. Hedge funds have reduced their short positions on the US dollar on Tuesday, as strategists question whether economic data - especially inflation - can support rate cuts to the extent expected by investors. Currently, the currency market pricing indicates that the cumulative rate cut by the end of the year is about 64 basis points.