The dollar eased from recent highs as traders reevaluated the Federal Reserve’s potential rate cut path. A robust jobs report and statements from Fed officials, including Chair Powell, have led to a shift in market expectations. Investors now anticipate fewer and smaller rate cuts in 2024, with the likelihood of a significant initial cut in September diminishing. This reassessment has supported the dollar’s strength against major currencies, though geopolitical tensions continue to influence its safe-haven appeal.