Investing.com - Sterling and the euro turned lower on Tuesday, while the dollar pulled up from three-week lows against a currency basket to hit the highs of the day.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, edged up to 89.20 by 06:09 AM ET (10:09 AM GMT), from an overnight low of 89.08.
The dollar had drifted lower earlier as risk appetite improved amid relief after U.S.-led missile strikes on Syria over the weekend did not lead to an escalation into a broader conflict.
But geopolitical tensions remained in focus amid lingering concerns over a simmering U.S. - China trade spat.
The dollar had come under pressure on Monday after U.S. President Donald Trump accused Russia and China of devaluing their currencies in a Twitter post.
The tweet came after the U.S. Treasury Department published its semi-annual report on currencies on Friday and declined to name China as a currency manipulator.
China's foreign ministry said on Tuesday that information coming out of U.S. regarding the Chinese currency is “a bit chaotic”.
The euro erased early gains, pulling back from three-week highs against the dollar, with EUR/USD dipping 0.08% to 1.2370.
The euro came under some selling pressure after a report showing that German economic sentiment deteriorated sharply again in April amid concerns over heightened international trade tensions.
The pound eased back from 22-month highs against the dollar after UK jobs data on Tuesday showed that wage growth missed estimates, but a cost of living squeeze is still easing.
The data indicated that inflationary pressures are picking up, supporting expectations for a rate hike by the Bank of England next month.
The dollar remained slightly lower against the yen, with USD/JPY last at 107.05.