The U.S. dollar rose on Tuesday as rising coronavirus cases and doubts over the speed and size of U.S. stimulus tempered traders’ upbeat mood, while investors were also cautious ahead of the Federal Reserve’s policy review later in the week. U.S. Treasuries held onto gains, equity markets fell in Asia, and the cautious move into safer assets pushed the dollar index higher. The greenback rose 0.1% to 90.462, close to a one-week high and near the middle of a range it has held for most of the month.
The euro, which fell on Monday as German business morale slumped, is also trading in a range between support around $1.2050 and resistance at $1.2215. It slipped 0.1% to $1.2128. The yen was steady at 103.71 per dollar. The risk-sensitive Australian dollar hit a one-week low and the New Zealand dollar fell 0.4%.
Tight liquidity supported the Chinese yuan. One-year onshore yuan forwards rose to their highest levels of 2021, while the onshore spot price edged up 0.1% to 6.4733.