The dollar strengthened across the board on Tuesday and hit an eight-week high against the euro as investors brought forward their bets on when the U.S. Federal Reserve will raise interest rates again.
The biggest loser among currencies in developed markets was the Australian dollar, which slid by more than 1 percent to its weakest since early March. In contrast to hawkish comments from the Fed, the Reserve Bank of Australia fueled speculation overnight that interest rates will be cut again.
Helped by its gains against the euro, the U.S. dollar hit its strongest in eight weeks against a basket of major currencies. It was 0.57 percent higher against the European single currency at $1.1152.