The U.S. dollar on Tuesday clung to the previous day's gains, supported by a bounce in Treasury yields and ahead of U.S. inflation data that could influence the timing of the next Federal Reserve interest rate increase.
The greenback also found support as investors further unwound bearish bets against it. The dollar index, which tracks the currency against a basket of six major rivals, was up 0.02 percent at 91.86, after rising as high as 92.08.
The index rose 0.60 percent on Monday, its largest gain this month, as receding worries about North Korea and Hurricane Irma helped lift investor risk sentiment.
"Interest rates are certainly supportive of the dollar," said Erik Nelson, currency strategist at Wells Fargo Securities in New York.
U.S. long-dated Treasury yields reached two-week highs, rising for a third straight session amid a respite in geopolitical tensions in North Korea, with investors bracing for a 10-year note auction later in the session.