Dollar slips on risks as Aussie dips after rate hike

The US dollar traded lower on Tuesday amid caution over US-Iran tensions and upcoming midterm elections. Meanwhile, the Australian dollar dipped after the central bank delivered an expected rate hike.

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FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar traded defensively during Tuesday morning trade amid geopolitical tensions in United States and Iran ahead of midterm elections, while the Australian dollar dipped following a widely expected central bank rate hike.