The U.S. dollar hit a two-week high against the euro as investors gear up for a week of significant data, including the U.S. jobs report due on Friday.
At 18:40 EST (22:40 GMT), the indicator was little changed at 1.1046, down 0.1% to 145.31.
The employment report is expected to have an significant impact on the Federal Reserve’s decision, which is scheduled for release on September 18.
The wait for the jobs data follows comments last month by Federal Reserve Chairman Jerome Powell that heralded the beginning of interest rate cuts on concerns about a weakening labor market.
The likelihood of a rate cut at the Federal Reserve meeting is a focal point for investors. According to , there is a 63% chance of a 25 basis point cut and a 37% chance of a 50 basis point cut.
The market has factored in a total of 100 basis points of interest rate cuts for the year.
The euro fell, falling 0.24% to $1.1043 against the dollar on Tuesday. It had earlier hit a two-week low, falling to $1.1033 during the trading session.
Amid a broader sell-off in stocks and risk currencies on Tuesday, the dollar, traditionally seen as a safe-haven asset, also appeared to gain as investors fled to safety.
