The U.S. dollar declined broadly on Tuesday, sinking to a four-year low against the euro, with the euro rising 0.5% to $1.827, its highest since September 2021.

The U.S. dollar index, tracking the dollar against six major currencies, dropped 0.6% to 96.787, marking its lowest level since early July.

The big picture: Renewed selling pressure on the dollar comes as investors increasingly expect the Federal Reserve to initiate a 25-basis-point interest rate cut at its Wednesday meeting. • U.S. President Donald Trump has also advocated for aggressive monetary easing, contributing to the market’s dovish outlook. • Labor market data indicating weakness has been a key factor pushing markets toward anticipating Fed easing.

Go deeper: The British pound strengthened 0.4% to $1.36530, reaching

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