Investing.com - The yen held slightly weaker to flat on Tuesday in Asia in a light data day.
USD/JPY changed hands at 112.96, up 0.04%, while AUD/USD traded at 0.7232, up 0.07%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted at 97.38, up 0.79%.
Overnight, the dollar remained broadly higher against the other major currencies on Monday, hovering close to two-week highs as hopes for additional U.S. rate hikes this year continued to support the greenback.
The greenback remained broadly supported after data on Friday showing that U.S. core inflation rose at the fastest rate in four years in January underlined expectations for further interest rates hikes by the Federal Reserve this year.
The euro weakened after research group Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors dropped from 53.6 in January to 53.0 in February, a 13-month low and below forecasts for 53.3.
The report came shprtly after data showing that French private sector activity slid into contraction territory last month, while business activity in Germany grew at the slowest pace in seven months.
The data added to pressure on the European Central Bank to step up measures to bolster growth in the region.
Sterling came under broad selling pressure after London Mayor Boris Johnson’s shock decision to back a campaign for Britain to exit the European Union.
British Prime Minister David Cameron reached a deal with EU leaders on Friday giving Britain a special status in the bloc, which paved the way for him to call a referendum on EU membership on June 23.