Investing.com - The dollar turned lower against other major currencies in subdued trade on Tuesday, although growing expectations for a December rate hike and a U.S. tax reform plan before the end of the year continued to support.
The greenback remained supported after upbeat U.S. manufacturing data seemed to boost chances for a December rate hike by the Federal Reserve.
The U.S. dollar has also been supported in recent session by growing hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last week.
EUR/USD gained 0.31% to 1.1767, as it continued to recover from losses posted after Catalans voted for independence in a contested referendum on Sunday that ended in violence when police cracked down on polling booths, injuring hundreds of people.
The pound remained lower, with GBP/USD down 0.14% at 1.3258, the lowest since September 14, after data earlier showed that activity in the UK construction sector contracted for the first time in 13 months in September.
Elsewhere, the yen was steady, with USD/JPY at 112.82, while USD/CHF slipped 0.11% to 0.9735.
The Australian dollar was little changed, with AUD/USD at 0.7823, while NZD/USD shed 0.28% to 0.7172.
In a widely expected move, the Reserve Bank of Australia held its benchmark interest rate at 1.50% at the conclusion of its monthly policy meeting on Tuesday
Commenting on the decision, the central bank said economic growth was expected to pick up gradually in the coming years, but it warned against slow wage growth and high household debt.
Meanwhile, USD/CAD was almost unchanged at 1.2501, just off a more than four-week high of 1.2538 reachedearlier in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 93.33 by 10:25 a.m. ET (14:25 GMT), off a one-and-a-half month highs of 93.78 hit overnight.