The dollar recouped some of its losses on Tuesday, supported by reports that the U.S. administration may ease planned tariffs, although investor caution lingered over whether a meaningful de-escalation in the U.

The dollar struggled to recover on Tuesday after sharp losses, as confusion over the Sino-U.S. trade war continued to unsettle markets. Treasury Secretary Scott Bessent said the onus was on China to de-escalate tariffs,