The dollar was hemmed into narrow ranges against most currencies on Tuesday as renewed concerns about diplomatic tension between the United States and China and rising coronavirus cases put a dent in risk appetite.

The dollar stood at 107.35 yen on Tuesday in Asia following a 0.4% gain in the previous session.

The dollar traded at 0.9419 Swiss franc after eking out three consecutive sessions of narrow gains.

The euro was quoted at $1.1346, resting below a one-month high reached on Monday. The common currency traded at 90.36 pence, holding onto a 0.9% gain from the previous session.

The United States and China are waging diplomatic battles on several fronts that have the potential to unsettle financial markets.

Elsewhere in currencies, the Australian dollar was little changed at $0.6935. Sentiment for the Aussie has taken a hit as some Australian states also re-impose coronavirus restrictions.

The New Zealand dollar fell slightly to $0.6530.

Source: Reuters