The US dollar edged up on Tuesday, reversing some of the recent losses, as the foreign exchange markets regained a sense of stability.

The dollar index that gauges the greenback versus its major pairs, advanced by 0.4% to 102.907, post dipping to the lowest level in seven months on Monday.

The greenback tumbled by worries of US recession following the disappointing non-farm payroll figures, which spiked speculations that Fed may lower interest rates beyond expectations.

Traders’ projections currently hover around 110 bps easing from Fed, with 80% probability of a 50-bps rate cut in September.

On Monday, U.S. central bank policymakers affirmed the weaker-than-expected July employment figures does not indicate economic recession in the US. However, they also hinted that the Fed may need to reduce interest rates to prevent such a scenario.

EUR/USD slumped by 0.4% to 1.0911, touching a seven-month peak of 1.1009 on Monday, with data indicated that retail sales slumped 0.3% in June in the eurozone.

GBP/USD dipped 0.5% to 1.2706, giving up some of its latest gains as the dollar bounced.

USD/JPY advanced by 0.2% to 144.47, with the yen declining for the first time this month, it steadied after the significant fluctuations of the latest days.