USD weakened slightly against most of its major counterparts in the European session on Tuesday, as demand for safe-havens eased as investors reassessed the Omicron-related risks.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged down 0.07% to 96.02.
The results of different studies on Omicron continue to confirm that this coronavirus variant is likely to trigger only mild symptoms in vaccinated people. This fact raised optimism that Omicron is not going to be a disastrous strait for the global economy - at least not for long.
The U.S. currency, however, continues to see relative support from expectations the U.S. Federal Reserve could start hiking interest rates as early as March next year. According to the CME FedWatch Tool, market participants are now seeing a 58.4% probability that the Fed will increase its interest rates at its March 16 gathering.