The U.S. dollar held at a two-month high and the Australian dollar gained on Tuesday as expectations of progress in trade talks between the United States and China and a tentative deal to avoid a U.S. government shutdown lifted sentiment.
Against a basket of its rivals, the dollar was broadly steady at 96.986, after climbing to its highest level since mid-December at 97.117 in the previous session.
Weak European data has hurt sentiment towards the single currency. On Tuesday the euro held near a 2-1/2 month low of $1.1267 hit in the previous session.
Sterling was broadly steady at $1.2878 before a statement by Prime Minister Theresa May to lawmakers in parliament.