Investing.com - The euro was steady against the dollar on Tuesday, after recovering from an 11-year nadir in the previous session as investors began turning their attention to Wednesday’s Federal Reserve meeting.
EUR/USD was at 1.1250 having rebounded from Monday’s lows of 1.1096, the weakest since September 2003.
The shared currency initially fell on Monday in the wake of a sweeping election victory for the anti-austerity Syriza party in Greece.
However, the euro stabilized as the currency’s steep losses prompted investors to take profits on bearish euro positions.
Investors still remained wary amid concerns over Syriza’s pledge to renegotiate the terms of Greece's €240 billion international bailout, which could cause the country to leave the euro zone.
The European Central Bank unveiled a €1.2 trillion asset purchase program last week, highlighting the diverging monetary policy stance between it and the Federal Reserve, which is on track to raise rates later this year.
Investors were looking ahead to the outcome of Wednesday’s Fed meeting, with the bank expected to stick to its pledge to be patient on tightening monetary policy.
In other trade, USD/JPY was down 0.39% to 118.01, off overnight highs of 118.66.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.13% to 95.16.