The euro extended gains on Tuesday on growing expectations that any concerns the European Central Bank flags about its strengthening at a meeting this week will have a limited impact.
“Any attempt to jawbone the currency lower by the ECB will be limited in its impact as the broader market expects policymakers to stick to their plan of gradually unwinding its policy stimulus,” said Peter Rosenstreich, head of market strategy at Swissquote in Switzerland.
The euro climbed 0.1 percent to $1.1905, notching up meagre gains as most currencies traded broadly unchanged from overnight ranges as tensions over North Korea remained high, Reuters reported.
It has gained more than 13 percent against the dollar this year and is up more than 5 percent on a trade-weighted index calculated by the ECB since April.
Political tensions kept the dollar on the back foot against the yen and the Swiss franc.
The dollar’s index against a basket of six major currencies slipped 0.15 percent to 92.508.