Investing.com - The dollar and the euro were higher on Tuesday as hopes that the crisis between Russia and Ukraine is easing buoyed market sentiment, following a broad based selloff in markets on Monday.
USD/JPY rose to session highs of 101.95 and was last up 0.37% to 101.82, moving off the previous session’s one-month low of 101.19.
The dollar’s move higher came after a report that Russian President Vladimir Putin had ordered troops engaged in military exercises close to Ukraine’s borders to return to base after the exercises concluded.
Investors remained cautious after President Barack Obama said the U.S. was considering economic sanctions to "isolate Russia" following its military intervention in Ukraine’s Crimea region.
The dollar was also boosted after the Institute for Supply Management reported Monday that its manufacturing index rose more than forecast in February. A separate report showed that U.S. personal spending was higher in January from a month earlier, indicating that the economy is improving.
The euro rose against the dollar and the yen, with EUR/USD up 0.14% to 1.3753 and EUR/JPY climbing 0.49% to 140.00.
The common currency continued to remain supported after better-than-expected euro zone inflation data late last week eased pressure on the European Central Bank to tighten monetary policy at its upcoming meeting on Thursday.
The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.12% to 0.8842.
Elsewhere, GBP/USD was up 0.22% to 1.6701, ahead of U.K. data on construction activity due out later in the session.
Australia''s dollar moved higher, with AUD/USD rising 0.22% to trade at 0.8955. Earlier Tuesday the Reserve Bank of Australia left rates on hold at 0.25% and indicated that it continues to see a period of stability on monetary policy. Separately, NZD/USD was up 0.16% to 0.8382.
The U.S. dollar was little changed against the Canadian dollar, with USD/CAD inching up 0.05% to 1.1082.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.04% to 80.05.
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