The dollar index stabilized near the 97 mark on Tuesday as markets took stock of geopolitical developments and reassessed risks arising from the Russia-Ukraine conflict. Officials from both countries held an initial round of ceasefire talks on Monday, allowing some sharp market reactions to retrace as positions were cleared out.
Investors were also concerned that inflationary risks and supply disruptions resulting from the conflict could dampen global growth, clouding the outlook for monetary policy. Meanwhile, investors look ahead to Federal Reserve chair Jerome Powell’s appearance in Congress on Wednesday for fresh clues on the timing and magnitude of interest rate hikes.