Investing.com - The dollar edged slightly higher but remained under pressure against other major currencies on Tuesday, amid ongoing concerns over the pace of future U.S. rate hikes and uncertainty over a potential U.S. tax overhaul.
Sentiment on the greenback remained vulnerable after last week's minutes of the Federal Reserve’s November meeting showed that some officials were concerned inflation would stay below the bank's 2% target for longer than expected.
Investors were also eyeing a confirmation hearing on Tuesday for Fed chair nominee Jerome Powell, with hopes he may give some clues on future policy decisions.
In remarks prepared for the hearing released on Monday, Powell said: "We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink".
Market participants also continued to focus on a potential U.S. tax reform plan. President Donald Trump was set to meet Senate Republicans on Tuesday to discuss the party's efforts to pass tax reform legislation.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.13% at 92.97 by 05:15 a.m. ET (09:15 GMT), just off Monday's nine-week lows of 92.43.
EUR/USD eased 0.08% to 1.1888, while GBP/USD slipped 0.11% to trade at 1.3301.
Elsewhere, the yen was steady, with USD/JPY at 111.30 and with USD/CHF up 0.09% at 0.9828.
The Australian dollar was weaker, with AUD/USD down 0.11% at 0.7594, while NZD/USD added 0.12% to 0.6922.
Meanwhile, USD/CAD rose 0.20% to trade at 1.2796.