The U.S. dollar recovered against a basket of major currencies on Tuesday after worrying economic data out of the euro zone and United Kingdom underscored the relative health of the U.S. economy.
The dollar reversed Monday's losses against the euro after euro zone industrial output and the ZEW indicator of German investor sentiment came in well below forecasts, renewing fears of another technical recession in the euro zone.
The concerns over global growth, particularly in Europe, overshadowed worries that the U.S. Federal Reserve would delay its first interest rate hike. The euro hit an 11-month low against the yen.
Concerns over a delay in the Fed's timeline for hiking rates hurt the dollar on Monday. An interest rate hike is expected to boost the dollar by driving investment flows into the U.S.