The US dollar surged on Tuesday as the investors contracted their projections on early interest rate trim in March, meanwhile the Japanese Yen and the sterling slumped as stress over inflation diminished.

The dollar index that gauges the greenback versus its major pairs, advanced by 0.51%to 103.16, hovering around 1 month high. The index saw a 0.2% overnight increase in muted activity, amid the US public holiday yesterday.

EUR/USD slipped by 0.54% to $1.0892, poised for its sharpest single day dip in two weeks.

Global borrowing rates forecast was outweighed by remarks made by ECB Bank officials diminishing the possibility of early rate cuts.

GBP/USD slumped by 0.71% at $1.2637 post the release of British wage growth figures dropped significantly in 3 months till November, bolstering expectations that BOE is likely to trim interest rate sharply in 2024.

USD/JPY advanced by 0.58% at 146.65 almost recording the highest level in 5 weeks. The Japanese yen slumped following the release of the Japan's wholesale price index that muted in December 2023.