The U.S. dollar began Tuesday's trading by strengthening its positions against most of the major currencies, as traders adjusted their expectations for a Federal Reserve interest rate cut.

Current data from CME FedWatch indicates that the markets are now pricing in a 61.3% chance of a Fed rate cut in June, compared to a likelihood of about 70.1% a week ago.

The U.S. Dollar Index (DXY), which tracks its performance against six major world currencies, rose by 0.17% to 105.07.

On Monday, U.S. stock indices mostly fell due to investor concerns over the timing of the Federal Reserve's interest rate cuts.

The EUR/USD pair dropped by 0.13% to 1.0728, while the GBP/USD pair increased by 0.04% to 1.2522.

Despite the British economy continuing to contract in the fourth quarter of 2023, many analysts have voiced predictions of its growth in the first quarter.

Ashley Webb, an economist at Capital Economics, believes that timely indicators suggest the British economy likely emerged from recession in the first quarter.