The dollar rose on Tuesday as traders awaited a key U.S. retail sales report and comments from the Federal Reserve for clearer signals on the timing and pace of interest rate cuts.
The dollar index, which measures the performance of the greenback against a basket of six major currencies, rose 0.11% to 105.39 during the Asian trading session.
The dollar index lost 0.2% on Monday after retreating from a one-and-a-half-month high of 105.80 hit on Friday.
The dollar swung in both directions as moderate US inflation readings contrasted with the general hawkish stance of US Federal Reserve officials at this week's meeting.
Last year, when they cut their previous median forecast for interest rate cuts from three this year to one.
The rise in the dollar index was largely driven by a heavy sell-off in the euro, after French President Emmanuel Macron unexpectedly called early legislative elections last week in response to the defeat of his ruling centrist party to Marine Le Pen's National Rally in European Parliament elections.
The dollar was little changed at 157.675 yen on Tuesday.
The euro fell 0.12% to $1.0721, paring some of the previous session's gains of 0.26%. The pound fell 0.07% to $1.2696.
The euro has steadied somewhat this week after Le Pen indicated she does not intend to pursue extreme fiscal policies if she is in power, and that she will not push for Macron's ouster.
Meanwhile, the Australian dollar was unaffected by the Reserve Bank of Australia's expected decision to keep interest rates unchanged on Tuesday, and settled at $0.66115.
The New Zealand dollar fell 0.27% to $0.61145.
On the cryptocurrency front, Bitcoin lost nearly 1% to $65,725, having earlier touched a one-month low of $64,569.7.
