The US dollar climbed to a one-month high on Tuesday, buoyed by lingering market speculation that the Federal Reserve may still raise interest rates at its next policy gathering.
Despite easing oil prices and broader inflation concerns that have tempered some hawkish bets, the greenback held firm as traders continued to assess the risk of a surprise tightening move.
Against the Japanese yen, the dollar gained 0.05 per cent to trade at 163.82.
Sterling, meanwhile, eased slightly, slipping 0.02 per cent to US$1.3284.
The moves reflect a cautious positioning among currency traders who are unwilling to fully discount the possibility of a rate hike, even as macroeconomic data has shown signs of cooling.
This repricing comes as the Federal Reserve prepares for its upcoming policy decision, with markets closely watching for any signals that could confirm or dispel the hike narrative.