“If we don’t get dovishness, I expect you might actually get rates rising and pop up higher in the U.S. dollar,” Westpac FX analyst Imre Speizer told Reuters.
The dollar was down on Monday morning, but capped its losses after a meeting between U.S. and Chinese officials, originally scheduled for Saturday, was delayed.
U.S. blue chip stocks rose Tuesday after President Donald Trump said he wants to cut capital gains taxes and as the coronavirus spread appears to be slowing.