Investing.com - The dollar rose against a basket of the other major currencies on Tuesday as investors awaited the minutes of the Federal Reserve’s latest meeting for fresh cues on the expected pace of rate hikes this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.44% at 101.36.
The dollar climbed against the yen, with USD/JPY rising 0.43% to 113.59, re-approaching the two-week highs of 114.95 set last Wednesday.
The minutes from the Fed’s January meeting are due to be released on Wednesday and investors will be looking for signals on the pace of interest rate hikes this year.
Last week Fed Chair Janet Yellen said a rate increase would be appropriate at one of the Fed’s forthcoming meetings.
The Fed has indicated that it could hike rates three times this year.
According to Investing.com's Fed Rate Monitor Tool less than 20% of traders expect the Fed to raise interest rates at its next meeting in March. The chance of a June increase is seen at slightly below 50%.
The euro remained on the defensive, with EUR/USD down 0.57% at 1.0550 amid fears over the possibility of a Brexit or Trump-style shock result in France’s upcoming presidential election.
An opinion poll on Monday showed right-wing candidate Marine Le Pen narrowing the gap with more moderate opponents.
The euro shrugged off data showing that euro area private sector growth accelerated in February, boosted by a pick-up in France and Germany.
The euro was weaker against the yen and the pound, with EUR/JPY sliding 0.12% to 119.86 and EUR/GBP down 0.36% at 0.8488.
Meanwhile, sterling was lower against the dollar, with GBP/USD losing 0.3% to trade at 1.2422.