Ammon News - The dollar inched higher and held close to a two-week high on Tuesday as investors geared up for a slew of economic data, including Friday's U.S. payrolls, that could influence the size of an expected interest rate cut from the Federal Reserve.

The euro was 0.16% lower at $1.1055, not far from the two-week low of $1.1042 it touched in the previous session, while sterling eased 0.17% to $1.3124.

That left the dollar index , which measures the U.S. currency against six rivals, 0.11% higher at 101.77, just shy of the two-week high of 101.79 it touched on Monday. The index fell 2.2% in August on expectations of U.S. rate cuts.

Ten-year Treasury yields were little changed at 3.915% as trade resumed in Asia following a U.S. holiday on Monday.

Elsewhere, the yen fetched 146.50 per dollar, up 0.3% on the day but still close to the two-week low of 147.16 hit on Monday.

Analysts said the yen moves was likely just an unwind of Monday's drop when U.S. markets were closed leading to thin liquidity and sudden moves.

The Australian dollar fell 0.8 to $0.6737, ahead of the gross domestic product (GDP) report due on Wednesday, after rising 3.5% in August. The New Zealand dollar slipped 0.75% to $0.61875, having surged 5% last month.

Reuters