The US dollar hit a nearly two-week high against the euro on Tuesday on continued belief that the Federal Reserve would hike rates this year while the European Central Bank could ease further. The euro hit $1.11370, its lowest against the greenback since September 9, following Fed officials' recent comments indicating that the US central bank was still on track to raise interest rates this year for the first time since 2006.
Analysts said traders expect the ECB, meanwhile, to ease policy further.
"The market is expecting and waiting and hoping that the Fed hikes rates," said Jason Leinwand, managing director at derivatives advisory firm Riverside Risk Advisors in New York.
The dollar slipped against the Japanese yen, meanwhile, on concerns about global growth. Analysts said traders digested the Fed's September 17 policy statement and comments from Fed Chair Janet Yellen regarding worries about the global economy, which in turn helped the safe-haven yen gain while riskier emerging market currencies fell.
The US dollar was last up 1.17 percent against the Mexican peso at 16.86 pesos, and was up 1.2 percent against the Brazilian real at 4.03 reals.
The euro was last down 0.43 percent against the dollar at $1.11420. The dollar was last down 0.5 percent against the yen at 119.970 yen. The dollar was last up 0.12 percent against the Swiss franc at 0.97290 franc.
The dollar index, which measures the greenback against a basket of six major currencies, was last up 0.36 percent at 96.224. That was just under a nearly two-week high of 96.259.