The dollar rose against a basket of major currencies on Tuesday, rebounding from a five-week low hit earlier in the session, as trade tensions receded and the greenback found support from month-end flows.
The dollar index, which measures the greenback against a basket of six other major currencies, was up 0.39 percent at 89.38, after slipping to a five-week low of 88.942.
"Overall the dollar is seeing a bit of a rebound. A lot of that is due to monthend flows that tend to be supportive of the dollar," said Sireen Harajli, currency strategist at Mizuho in New York.
"Investors like to square out their positions that they take during the month by repatriating some of those back into dollar," she said.
Concerns regarding a trade war appear to have abated a little overnight and that too was helping the greenback, Harajli said.
Global markets were shaken this month after U.S. President Donald Trump moved to impose tariffs on Chinese goods and Beijing threatened similar measures. But fears of a trade war eased on hopes that the United States and China would begin negotiations.