The dollar rose broadly on Tuesday and firmed above 150 yen on mounting expectations of higher-for-longer U.S. rates, contrasting with a recession in Japan and market doubts about a near-term exit from the country's ultra-easy policy.

China grabbed traders' attention early in the day after a big cut to its benchmark reference rate for mortgages. While the cut comes on top of other efforts to stimulate credit demand and revive the property market, the yuan struggled near a three-month low as investors say more policy support is required to shore up fragile confidence.

The offshore yuan stood at 7.2089 per dollar.

The Aussie, often used as a liquid proxy for the yuan, fell 0.15% to $0.6530, while the New Zealand dollar lost 0.19% to $0.61385, as the move from China failed to substantially boost investor optimism.

In the broader market, the greenback rose 0.2% to 150.42 yen, having already surpassed the key 150 yen level for six straight sessions and prompting warnings from Japanese officials in a bid to stabilise the currency.

The euro fell 0.1% to $1.0768, while sterling dipped 0.13% to $1.25795.

The dollar index, a measure of the greenback against its major peers, rose 0.08% to 104.37.

Source : Reuters