Dollar Steadies as Hopes for US-Iran Deal Fizzle

The US dollar held steady on Tuesday as hopes of a deal between the US and Iran to end tensions faded. The yen, which had seen a sharp drop in the previous session, settled after rising to 158.93 per US dollar in Asian hours but still remained below its three-month high of 155.20 reached last week following a rare US-Japan intervention.

The Australian dollar was at an eight-week high ahead of a policy decision from the country's central bank, the Reserve Bank of Australia (RBA). Investors expect the RBA to keep its policy rate unchanged, and the AUD stood at $0.7057 on Tuesday.