Ahead of a key German survey of business sentiment due out later on Tuesday, the dollar strengthened to $1.4717 against the euro.

Against the pound, the dollar was trading at $1.8468, just below a two-year high versus sterling.

The latest German survey may show more signs of a possible European recession.

Deteriorating outlook

The US currency has benefited as the economic outlook has darkened in both mainland Europe and the UK.

Investment guru Warren Buffett said last week that he had no bets against the dollar - underscoring the currency's strength. The fall in the euro and sterling could help European exporters whose goods will now be cheaper overseas.

But it will hurt holidaymakers who have benefited from a strong pound when travelling to countries which use the dollar.

While the dollar resumed its rises on Tuesday, oil prices also gained.

US light crude was up 24 cents to $115.35 a barrel, while London's Brent gained 46 cents to $114.49.

BBC