Investing.com - The U.S. dollar rose against most other currencies on Tuesday as Fed rate hike expectations continued to bolster the greenback.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 92.30 as of 11:44 AM ET (16:44 GMT).
Demand for the dollar was underpinned by expectations for further interest rates hikes by the Federal Reserve this year.
A weak euro also helped support the dollar. EUR/USD was down 0.38% to 1.1922, after losing around 0.56% on Monday.
The fall in the euro came as investors took profits after its recent rally amid concerns that the European Central Bank may attempt to talk down the strengthening currency ahead of its monetary policy meeting later this month.
After getting off to a strong start to the year the single currency had hit a four-month high of 1.2088 on Thursday, putting it within striking distance of a September peak of 1.2092, its strongest level since early 2015.
Meanwhile the Japanese yen rose after the Bank of Japan decreased the size of its bond purchases by 5%. USD/JPY was down 0.54% to 112.52 from a low of 112.50 earlier.
Elsewhere, sterling moved lower against the dollar, with GBP/USD losing 0.38% to trade at 1.3517.
The Australian dollar was down, with AUD/USD falling 0.23% to 0.7825 while NZD/USD was up 0.17% to 0.7182.