The dollar experienced broad weakness against major currencies on Tuesday, succumbing to light trading conditions before the extended holiday weekend. Currency markets saw diminished activity as many traders closed their books for the year.

Analysts suggest the dollar’s decline reflects ongoing uncertainty regarding the pace of economic growth and the future direction of interest rates. Recent economic indicators have presented a mixed picture, leaving investors hesitant to take strong positions. The euro, yen, and pound all gained ground against the greenback.

Trading volume is projected to remain subdued for the remainder of the week, with most financial institutions operating with skeleton crews. A return to more typical market activity is not expected until after the New Year holiday.