The U.S. dollar regained some ground on Tuesday and hovered near a one-week high against a basket of currencies, while the Australian dollar fell after its central bank left interest rates unchanged.

The Aussie was last down 0.63% at $0.6578 after the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35% on Tuesday, as widely expected, and noted that economic data received since November had been broadly in line with forecasts.

That left the Antipodean currency some distance away from Monday's four-month top of $0.6690, which it hit on the back of the U.S. dollar's decline over the past few sessions.

"The Aussie has had a great run in recent weeks and was arguably overbought over the near-term," said Matt Simpson, senior market analyst at City Index.

The decline in the Aussie also dragged the New Zealand dollar slightly lower, with the kiwi last down 0.25% to $0.6152.

Elsewhere, the greenback held broadly steady, keeping the euro pinned near a three-week low hit on Monday. The single currency last traded at $1.0835.

Sterling was little changed at $1.2628, some distance away from its recent three-month high, while the dollar index stood near a more than one-week high and was last at 103.61.

U.S. economic indicators this week, including November's non-manufacturing ISM figures and the closely watched nonfarm payrolls report, will provide further clarity on the future path of interest rates.

Against the yen, the dollar fell 0.25% to 146.82, not far from a three-month low of 146.235 yen hit in the previous session.

In cryptocurrencies, bitcoin last stood at $41,806, not far from the previous session's peak of $42,404, its highest level since April 2022.

Source: Reuters