News Summary

• The dollar kicked off the new year with its biggest daily jump since March as traders pared back bets on the scale of the Federal Reserve’s 2024 interest-rate reductions..
• The Bloomberg Dollar Spot Index closed higher by more than 0.7% on Tuesday, its biggest one-day advance since the wake of the regional banking turmoil more than nine months ago..
• The currency fell 2.7% last year, the worst annual performance since the Covid-19 pandemic shocked the world in 2020..