The dollar was mostly higher in early trading in Europe Tuesday, as fears of a sustained spike in oil prices and conflict in the Persian Gulf undercut risk assets ahead of the U.S. Federal Reserve’s two-day policy meeting.
The euro was at $1.1012, with the market keeping an eye on the first major confidence indicator of the month, the German ZEW index, due at 5 AM ET (0900 GMT).
By 3:45 AM ET, the dollar index, which tracks the greenback against a basket of major currencies, was at 98.185, little changed from late Monday but making gains against sterling, commodity currencies such as the Aussie and kiwi, and also against emerging currencies.
It also rose to a four-day high against the offshore Chinese yuan, which remains under pressure in the aftermath of weak economic data on Monday.
The British pound remained under pressure after Prime Minister Boris Johnson’s visit to Luxembourg on Monday again illustrated the lack of progress toward sealing a transitional deal with the European Union before Brexit takes place on Oct. 31.