The US dollar paused its recent rally on Tuesday as investors took a moment to assess the outlook for US interest rates. The currency had been on a strong uptrend in recent weeks, supported by expectations of a more aggressive tightening cycle by the Federal Reserve.
However, concerns about the potential impact of the Omicron variant of the coronavirus on the global economy have led some investors to reassess their expectations for interest rate hikes. The uncertainty surrounding the new variant has injected a note of caution into financial markets, prompting some to take profits on their dollar positions.
