Dollar catches breath ahead of Fed testimony, cryptocurrencies attempt recovery


LONDON (Reuters) – The dollar paused for breath on Tuesday as traders looked to testimony from Federal Reserve Chair Jerome Powell for further guidance on the recent surprise shift in the central bank’s policy outlook, while support crept back for cryptocurrencies.

FILE PHOTO: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo

The greenback had gained sharply since the Fed last week flagged sooner-than-expected interest rate increases, although it dipped on Monday to hand back a little bit of that rise.

Against the euro, the dollar nursed an overnight loss of about 0.4% to steady at around $1.1890. It crept higher to 110.42 yen, while the dollar index was 0.1% higher at 92.078 after a loss of about 0.5% on Monday.

The Australian and New Zealand dollars eased after Monday’s bounce from multi-month lows, with the Aussie down 0.5% to $0.7504 and the…

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