Federal Reserve Chairman Jerome Powell announced that the U.S. Federal Reserve is in no hurry to further reduce interest rates. He indicated that this year may see two more rate cuts totaling 50 basis points, provided economic data align with forecasts.

On Tuesday, the U.S. dollar saw gains despite a brief dip immediately following Powell's remarks. The dollar index, which measures the currency against six major counterparts, rose to 100.81.

Meanwhile, the yen weakened, trading at 144.09 per dollar at the start of the session. Asian stock markets reflected investor concerns over the potential impact of tighter U.S. monetary policy on global economic growth.

Powell's statements, delivered during a week packed with significant economic reports, emphasized the Federal Reserve's commitment to curbing inflation. He signaled that interest rates might remain elevated for an extended period, bolstering the dollar while sparking unease in global financial markets. This comes amid persistent inflationary pressures in the U.S., raising fears that higher borrowing costs could dampen economic activity both domestically and internationally.