The dollar index was below 97.7 on Tuesday, extending the pullback from the four-week high of 99 on July 17th as markets continued to assess the latest developments to US trade policy and how it may impact Fed rate decisions. Treasury Secretary Bessent noted that the administration prioritizes the quality of trade agreements over timing, downplaying the number of trade deals to be struck in the next two weeks and potentially paving the way for aggressive tariffs to be enforced at the start of August. Remarks from selected Fed officials and the latest FOMC minutes indicated that multiple members see tariffs as inflationary, driving the central bank to delay the continuation of rate cuts. Softening concerns, Bessent also noted that the current tariff truce with China will likely be extended next week ahead of their August 12th expiration. Among major pairs in the index, the yen gained as Japan's Prime Minister Ishiba is expected to stay in office and fend off political instability.