TOKYO - The US dollar fell toward multi-year lows against most major currencies on Tuesday as the Federal Reserve's new policy framework continued to fuel bets that US interest rates will stay lower for longer than other countries.
The US data calendar this week is full of important releases on manufacturing, durable goods, and employment, but positive results are unlikely to halt the dollar's decline due to strong expectations that rates will remain extremely low. Against the euro, the dollar fell to US$1.1973 on Tuesday in Asia to reach its lowest since May 2018.
Against a basket of six major currencies, the dollar index slid on Tuesday to a two-year low at 91.947.The largest faction in the ruling Liberal Democratic Party has thrown its support behind Yoshihide Suga, who currently serves as chief cabinet secretary.