The dollar fell on Tuesday amid growing anxiety over the looming U.S. fiscal cliff. Negotiations between the White House and Congress are struggling to find common ground to avert the series of automatic tax increases and spending cuts scheduled to begin in January.

The lack of progress in these negotiations has fueled concerns about the potential for a renewed recession if the fiscal cliff is not addressed. This uncertainty has prompted investors to seek safer assets and currencies, putting downward pressure on the dollar.

Analysts are closely monitoring developments in Washington, D.C., as the deadline for a resolution approaches. The outcome of these negotiations will likely have a significant impact on the dollar’s performance in the coming weeks.