The US dollar struggled for direction on Tuesday as a tremendous rally in the broader financial markets weighed on the greenback’s safe-haven status. As what occurred early last week, the greenback might take a breather and then reignite its meteoric ascent based on the equities arena and perhaps some economic data.

According to recent Federal Reserve statistics, industrial production rose 0.4% in September, up from the 0.1% drop in August. This also topped the market estimate of 0.1%. Manufacturing production advanced 0.4% last month, unchanged from the previous month. This was also double economists’ expectations of 0.2%.

On a year-over-year basis, industrial and manufacturing output jumped to 5.3% and 4.7%, respectively.

Capacity utilization edged up to 80.3% in September, up from 80.1% in August.

Meanwhile, investors were monitoring what was unfolding in the United Kingdom as reports suggest that the Bank of England (BoE) might delay the planned sales of its gilts to ensure the bond market stabilizes. But the central bank dismissed the report, calling it inaccurate.

“The only thing really to understand in my view is the down-move in yields basically means greater stability and the corollary of that is we’re likely to see less aggressive action from the BoE in the short term or the long term,” UBP global head of FX strategy Peter Kinsella said. “In a sense what’s happened is ‘what’s good for yields is not good for sterling’, because basically what you’re seeing is less interest-rate support.”

The leading US stock market benchmark indexes were up by triple digits on Tuesday, extending their gains from Monday. The rally has so far been driven by stronger-than-expected bank earnings.

The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, dipped 0.02% to 112.01, from an opening of 112.04. The index had climbed as much as 112.45 before paring its gains. The index is down about 1% this week, but it remains up nearly 17% year-to-date.

The US Treasury market was red across the board, with the benchmark ten-year yield down 3.9 basis points to 3.976%. The one-year yield slipped 2.4 basis points to 4.467%, while the 30-year bond was flat at 4.015%.

The USD/CAD currency pair slid 0.03% to 1.3715, from an opening of 1.3719, at 13:15 GMT on Tuesday. The EUR/USD rose 0.18% to 0.9862, from an opening of 0.9844.