The dollar index fell toward 99 on Tuesday as investors digested remarks from Federal Reserve Chair Jerome Powell highlighting a weakening labor market, which reinforced expectations for an imminent rate cut. The ongoing federal government shutdown has limited the release of key economic data, keeping near-term growth signals unclear and increasing focus on policy developments. Meanwhile, markets continued to track US–China trade tensions ahead of a potential Trump-Xi meeting, with China recently sanctioning US-linked units of South Korea’s Hanwha Ocean, adding uncertainty to the outlook for global commerce.