The dollar hovered near a two-month high on Tuesday as volatile oil prices and a rapid climb in Treasury yields lent support, although gains were limited as traders awaited US data this week for clues on the Federal Reserve's rate path.
The euro traded near its weakest level in three months at $1.1367 after the European Central Bank's chief signalled measured steps to quell inflation. Sterling was steady at $1.3248, also not far from a three-month trough.
