The dollar gained against a basket of peer currencies on Tuesday following the U.S. Independence Day long weekend as traders positioned themselves ahead of the release of the minutes from the U.S. Federal Reserve's pivotal June meeting, APA reports quoting Reuters.
Market participants will be looking for clues as to when the Fed will begin to taper its pandemic-induced bond-buying spree amid a recovering economy, when minutes of the June meeting are published on Wednesday.
"Investors are bracing themselves for possibly more of a hawkish spin from these minutes and that should provide some upside here for the dollar," said Edward Moya, a senior market analyst at OANDA.
At 3 p.m. Eastern time, the dollar index was up 0.328% at 92.550.