Dollar rose in European trade on Tuesday against a basket of major rivals, resuming gains and approaching three-week highs amid increasing demand.
A stream of bullish remarks by several Fed officials hurt the odds of early interest rate cuts in March.
The Index
The dollar index rose 0.25% to 102.48, with a session-low at 102.11, after falling 0.2% yesterday on profit-taking away from a three-week high at 103.1.
Atlanta Fed President Raphael Bostic said he expects the first interest rate cuts to occur in the third quarter of the year, which is much later than expected.
He said that inflation has fallen in the US faster than expected but employment remained strong.
Fed member Michelle Bowman said that current policies are tight enough to achieve the 2% inflation target, however she doesn't believe current conditions are appropriate for rate cuts year.
US Rates
Following the remarks, the odds of a 0.25% Fed interest rate cut in March fell from 65% to 60%.
And now investors await US inflation data for December later this week, to gauge the likely path ahead for US monetary policies.
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