The euro extended gains on Tuesday on renewed bets for the European Central Bank to normalize its monetary policy this year and to increase interest rates around the mid-2019.
The single currency, which gained 0.4 percent in the previous session, was firm at $1.2336.
The dollar index traded at 89.951, sliding from Monday’s intraday peak near 90.345.
The greenback advanced 0.2 percent to 106.32 yen, moving away from a 16-month trough of 105.24 yen touched in early March.
The pound was stable at $1.4024. On Monday, it jumped as high as $1.4088, its top since Feb. 16.