Demand for safe-haven assets kept the US Dollar Index in positive territory at 102.20 during Tuesday’s early Asian session, the highest level since April 2025. Higher US Treasury yields, Middle East conflicts and concerns about France’s finances supported the dollar relative to other currencies.
US employment data also shaped expectations for Federal Reserve policy. Nonfarm payrolls grew by just 29,000, with markets subsequently assessing a probability above 80% to unchanged interest rates at the October meeting. The chance of an increase stood near 20%, a decline from earlier expectations that had placed greater weight on further tightening.
The dollar’s support extended beyond the interest-rate outlook, as geopolitical tensions and French fiscal concerns encouraged investors to seek safety. The DXY tracks the US currency against a basket of six international currencies.
