The dollar firmed on Tuesday as traders weighed tariff worries, geopolitical uncertainties and the path to U.S. rate cuts, while the Australian dollar held near two-month highs after the Reserve Bank of Australia cut rates but cautioned on further easing.

Australia’s Reserve Bank (RBA) has lowered its benchmark interest rate for the first time since October 2020, cutting it from 4.35% to 4.1%. The decision, taken at the first board meeting of the year,

The Reserve Bank Board of Australia (RBA) announced they had cut interest rates by 25 basis points to 4.10%. The easing is the first since November 2020, when the central bank cut rates while grappling with the pandemic’s economic slowdown.