The U.S. dollar index falls to a five-week low near 105.40

The U.S. dollar index fell for a fourth straight session so far on Tuesday, adding to pressure as geopolitical concerns appeared to ease while U.S. yields also lost some momentum.

On the monetary policy front, markets continue to expect the Federal Reserve to keep interest rates on hold at its November 1 meeting, although uncertainty over a potential rate hike in December remains high.

In the U.S., October advanced manufacturing and services PMIs will be the focus of discussion later in the North American session.

The U.S. dollar index has accelerated its decline and is more likely to fall below the 106.00 support level on Tuesday.

During this period, the good health of the U.S. economy will continue to provide support for the dollar, as will the Fed’s renewed “long-term interest rate hike” policy.

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