Muscat: The US dollar today traded sideways after declining for a week, hemmed in by the Federal Reserve’s caution over the economy and as US lawmakers came closer to passing a bill expected to widen the nation’s fiscal deficit. The Australian dollar edged lower after the Reserve Bank of Australia’s cut benchmark interest rates by 25 basis points.

According to Oman News Agency, the US dollar index has tumbled as much as 10.6% from its January highs, marking one of the sharpest retreats for a three-month period. The greenback remained largely unchanged at 144.75 yen, following a dip to 144.66 on Monday, the weakest since May 8.

The dollar index continued its decline, sliding 0.1% after a 0.6% loss in the previous session. Meanwhile, the Australian dollar fell 0.5% to $0.6423, offsetting a 0.8% gain observed on Monday.

In other currency movements, sterling remained stable at $1.3353, while the euro held steady at $1.1249.