The U.S. dollar advanced on Tuesday, lifted by the Trump administration's plan to ease the impact of auto duties on local car manufacturers as well as the prospect of more tariff deals with some trading partners.

The dollar struggled to recover on Tuesday after sharp losses, as confusion over the Sino-U.S. trade war continued to unsettle markets. Treasury Secretary Scott Bessent said the onus was on China to de-escalate tariffs,

Stocks ticked sideways on Tuesday while the dollar headed towards its largest monthly fall for years as investors braced for the trade war to be felt in earnings and economic data. U.S. President Donald Trump's tariffs have rattled faith in U.