The U.S. dollar is trading near its lowest levels of the year, as markets anticipate an aggressive rate cut by the Federal Reserve. The euro and yen both fluctuate, with the yen showing promise for a rally.

By Rae Wee SINGAPORE (Reuters) -Asian stocks gained on Tuesday while the dollar and U.S. Treasury yields came under pressure, with just a day to go before the expected start of the Federal Reserve's easing cycle that could see policymakers deliver an outsized rate cut.

The U.S. dollar has been sliding in the run-up to a widely expected interest-rate cut from the Federal Reserve on Wednesday and, depending on the size of the Fed’s move, it could end up weakening further — or it could be a buying opportunity.