The U.S. dollar was close to a one-week low on Tuesday as markets await U.S. economic data while assessing whether President-elect Donald Trump's policies on tariffs will align with his rhetoric. Investors have been pricing in a scenario where the implementation of widespread tariffs could boost U.

It had seemed like nothing could stop the U.S. dollar from marching higher. Then a headline about President-elect Donald Trump’s tariff plans landed in traders’ newsfeeds, and suddenly all bets were off.

"Welcome to the age of Trump 2.0," ING Economics said of the whiplash in the dollar following a Washington Post report and Donald Trump's response.

The U.S. dollar eased towards a one-week low versus major peers on Tuesday as traders considered whether President-elect Donald Trump's proposed tariffs would be less aggressive than promised.

President-elect Donald Trump denied a report about his transition team developing a tariff plan that would be more restrained than his campaign proposals.

The Canadian dollar rose to a near three-week high against its U.S. counterpart on Monday, as investors weighed the potential for Canada's economy to escape broad-based U.S. tariffs and a report that Canadian Prime Minister Justin Trudeau would resign.