The US dollar hit a two-week peak against the euro as investors prepared for a week of crucial data, including the US payrolls report due on Friday.
At 18:40 EST (22:40 GMT), there was little change at 1.1046, while the price fell 0.1% to 145.31.
This jobs report is expected to have a major impact on the Federal Reserve’s decision, which will take place on September 18.
The expectation for the wage data follows comments from Fed Chairman Jerome Powell last month, who signaled the start of interest rate cuts due to concerns about a weakening labor market.
The likelihood of a rate cut at the Federal Reserve meeting is a concern for investors. According to the report, there is a 63% chance of a 25 basis point cut and a 37% chance of a 50 basis point cut.
Overall, the market has priced in a total of 100 basis points of cuts for the year.
The euro suffered a decline, falling 0.24% to $1.1043 against the dollar on Tuesday. It had previously hit a two-week low, falling to $1.1033 during the trading session.
Amid a broader sell-off in stocks and riskier currencies on Tuesday, the dollar, traditionally seen as a safe haven, also appeared to benefit from investors’ flight to safety.
