The dollar rebounded from a more than seven-month low against a basket of currencies on Tuesday, led by gains versus the safe-haven yen, as investors' appetite for risk and higher-yielding assets improved with the rise in oil prices.
Gains in oil also drove a rally in commodity-linked currencies such as the Australian and Canadian dollars.
"It's a commodity kind of day," said John Doyle, director of markets at Tempus Consulting in Washington.
"Oil is now more than 50 percent stronger than it was at its low in February. That's boosting general sentiment overall and with that we're seeing a rally in commodity currencies such as the Canadian dollar, which is about 30 percent higher now from its low in January."