NEW YORK: The dollar inched ahead on Tuesday, getting help from increasing US government bond yields and expectations that a Federal Reserve interest rate hike may come as early as September.
The euro, which rose 1.5 percent against the dollar in a selloff of the greenback on Monday, was last down 0.12 percent at $1.1277 after trading as low as $1.1215.
The dollar was also firmer against sterling and the Swiss franc but traded flat against the yen.
Trading was choppy as investors awaited a US retail sales report on Thursday that could reinforce optimism about the economy generated by last Friday's unexpectedly strong 280,000 increase in jobs during May.
"The consensus is that it will be a strong number," said Sireen Haraji, currency strategist at Mizuho in New York. Forecasters expect US retail sales for May to have risen 1.1 percent, according to a Reuters poll.
Soft consumer spending in recent months is reported to worry Fed policymakers, who are weighing their first interest rate hike in nearly a decade.
In a sign the US economy was regaining momentum, a government measure of jobs demand rose 5.2 percent to 5.4 million during April, according to the Job Openings and Labor Turnover Survey (JOLTS) data released on Tuesday.
It was highest monthly result since December 2000.
US Treasuries yields were higher, with the yield on benchmark 10-year Treasury notes hitting a seven-month peak of 2.449 percent before easing to 2.4203 percent, up 4 basis points from late on Monday.
The dollar index, which tracks the greenback against a basket of six major currencies, was last off 0.10 percent at 95.182, well below the high of 96.909 scaled on Friday when the US jobs report was released.
The dollar declined on Monday, in part because of worries US officials may be growing concerned about the economic fallout from a strong dollar.
Greece's drawn-out bailout talks also kept investors wary.
Athens has submitted alternative proposals to European creditors, a Greek government official said on Tuesday, but its deal with the European Union and IMF expires at the end of this month.
Greece must make heavy repayments by then that may be impossible without funds from the creditors.
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