London: The dollar hovered near its highest level in more than two years as traders scale back wagers on US rate cuts in 2025 after strong economic data, while investor worries about Britain's fiscal health kept frail sterling in the spotlight.

According to Qatar News Agency, the euro was steady at $1.02545 but hovered near the more than two-year low of $1.0177 it touched on Monday. The dollar index, which measures the US currency versus six other units, was 0.16% higher at 109.59, not far from the 26-month high of 110.17 it touched on Monday.

The yuan was at 7.3306 per dollar, slightly stronger than Monday's close, and the offshore yuan was last at 7.3472. The pound was trading at $1.2211 in early trading after hitting $1.21 on Monday, its lowest since November 2023.

The yen was stable at 157.55 per dollar, moving away from the near six-month low it touched last week. The Australian dollar was 0.26% higher on the day at $0.6192, after hitting its weakest since April 2020 on Monday. The New Zealand dollar rose 0.47% to $0.5609, hovering near the two-year low it hit in the previous session.