The U.S. dollar declined on Tuesday following a report from The Wall Street Journal suggesting that President-elect Donald Trump would delay imposing trade tariffs immediately after his inauguration. This expectation had previously bolstered the U.S. currency following Trump’s victory in the November election.

In Tuesday’s trading, the dollar index, which measures the U.S. currency against a basket of six other currencies, fell approximately 1.1%. This decline comes after the dollar had reached more than two-year highs in the previous week.

The Wall Street Journal report indicated that Trump plans to issue a comprehensive memo during his inauguration. The directive will instruct federal agencies to analyze current trade policies and review U.S. trade relations with China and neighboring countries. However, the report also noted that Trump would refrain from imposing new tariffs on his first day in office.

The dollar has appreciated by about 4% since the November election, as traders expected Trump’s policies to fuel inflation, potentially requiring higher interest rates to curb price pressures over an extended period.

“Financial markets are on edge to see what executive orders newly elected U.S. President Donald Trump will enact on his first day,” analysts at ING stated in a note.

“Currency markets are particularly focused on Trump’s statements regarding tariffs and the potential economic impact of policies targeting major U.S. trading partners.”