The dollar was hovering just below four-month highs against a currency basket on Tuesday amid indications that the U.S. economy remains on track, while the euro remained below the $1.19 level as concerns over economic headwinds weighed.
Demand for the dollar continued to be underpinned as rising U.S. Treasury yields and broadly solid economic data has underlined expectations for a steady pace of interest rate increases by the Federal Reserve this year.
The euro remained lower a day after falling below the $1.19 level for the first time this year.
EURUSD was last at 1.1928, not far from Monday’s lows of 1.1897, which was the weakest level in four months.
The euro was little changed after data showing that German industrial output rose more than expected in March. The report helped ease concerns that the euro area’s largest economy is facing headwinds from rising protectionism.
Data on Monday had shown that German industrial orders dropped for a third month running in March.
A recent soft patch of euro zone economic data has given rise to speculation that the European Central Bank may not be able to end its asset purchasing stimulus program in September, as some investors had expected.
The dollar edged lower against the traditional safe haven yen, with USDJPY dipping 0.11% to 108.96, off an overnight high of 109.13.
Investors were keeping an eye on geopolitical developments, ahead of an announcement by U.S. President Donald Trump later in the day about the future of an international nuclear agreement with Iran, which he has repeatedly threatened to withdraw from.
Elsewhere, the pound was fractionally higher, with GBPUSD edging up to 1.3568.
Meanwhile, the Australian dollar was flat, with AUDUSD at 0.7518, after falling as low as 0.7490 overnight.