Picture used for illustration.
The dollar held on to modest gains on Tuesday as upbeat U.S. home sales and Chinese factory data left traders torn between optimism about global growth rebounding and fears a surge in new COVID-19 cases could jeopardise a swift V-shaped recovery.
California and Texas saw record rises in new infections on Monday while in Britain, a reinforced lockdown was imposed in the city of Leicester.
News on the economic front was far better with Wall Street getting a boost from the U.S. housing market quickly recovering in May from a plunge triggered by the pandemic.
A warning from U.S. Federal Reserve Chair Jerome Powell that the outlook for the world's biggest economy was "extraordinarily uncertain", however, kept investors on their toes.
Against a basket of currencies, the dollar index was up 0.27% at 97.686 while the euro lost 0.3% at $1.1209.
Over the quarter, the European currency staged a 1.7% comeback after falling by a similar margin during the first three months of the year marked by the coronavirus financial market crash.
"Markets are jumpy. Tension remains between economic and virus pickup," said Moh Siong Sim, an FX analyst at the Bank of Singapore.
The safe-haven Swiss franc slipped marginally. The dollar rose 0.1% against the franc to 0.9521 while it was also climbed against the Japanese yen, another currency considered a safe store of value, and last up 0.1% to 107.715 yen,
Earlier the Chinese yuan and the Australian dollar gained slightly after a survey showed China's factory activity expanded at a stronger pace in June, beating expectations of slowdown from last month.
The U.S. currency gained more than 0.2% against a basket of currencies, as risk sentiment soured in early trading in Europe.
The Nikkei 225 lost 0.56 percent, or 126.45 points, to end at 22,455.76, while the broader Topix index fell 0.40 percent, or 6.36 points, to 1,587.09.
The NSE Nifty 50 index was up 0.15% at 9,897.85 by 0528 GMT, while the benchmark S&P BSE Sensex rose 0.05% to 33,523.63.
Lufthansa announces a 20% cut in leadership positions and the reduction of 1,000 administrative jobs,
Following a Monday slide, the greenback was steady on most majors and clung on near a two-week low against a basket of currencies , tracking the mood in equity markets.
By category, production of machine tools were up 27.6 per cent on the month, intermediate goods stagnated at 0.1 per cent and consumer goods were up slightly at 1.4 per cent, the Destatis official statistics agency said.