Dollar firms as investors hope Fed holds the line

The dollar steadied on Tuesday as a surge in COVID-19 infections and doubts over more U.S. stimulus hit the market’s upbeat mood. Traders were also cautious ahead of the Fed’s policy review later in the week.

Bonds held onto gains as equity markets cooled in Asian trade. The dollar index stood at 90.353, while the euro sat at $1.2190.

The yen steadied at 103.71 against the dollar, while the risk-sensitive Aussie and kiwi softened. In onshore trade, the yuan rose 0.1% to 6.4713. 

Global COVID-19 cases near 100 million with a death toll of more than 2 million, while vaccine rollouts are getting delayed. 

Investors are preparing for weak U.S. growth figures due later in the week, hoping that the Fed remains supportive.