The US dollar gained traction Tuesday, rebounding from Monday's selloff driven by escalating trade tensions. The Dollar Index rose 0.1% to 97.765 after the Supreme Court ruled President Trump's use of a 1977 emergency law to impose tariffs exceeded his authority. This ruling prompted Trump to announce a hike in temporary tariffs from 10% to 15%, creating uncertainty over existing trade agreements and prompting the EU to postpone a key trade deal vote. Analysts at ING noted the dollar index has stalled near 98.00, favoring a range of 97.50-98.00.

Meanwhile, the euro remained stable at 1.1788, buoyed by the European Central Bank's policy chief affirming rates are in a "good place" despite muted market reaction to the US tariff shifts. Sterling slipped slightly on BoE testimony, while the yen faced pressure from BoJ policy expectations and a Nikkei report suggesting US involvement in currency checks.