The U.S. dollar reached a one-month high, supported by increasing market expectations for a Federal Reserve interest rate hike. The dollar index climbed to 101.501, though a separate report showed it later eased 0.07% to 101.45, possibly reflecting different measurement times.
Against the Turkish lira, the dollar hit an all-time high of 47.37 lira. The euro traded at 53.92 lira and the British pound at 63.04 lira in Turkey.
The Federal Reserve's two-day policy meeting concludes on Wednesday. According to CME FedWatch, expectations for a rate hike of at least 25 basis points at the July meeting now stand at 37.9%, up from 16% a week ago. Markets are also pricing in nearly an 81% chance of a rate hike at the September meeting.
The euro traded at $1.1377, the dollar at 163.73 Japanese yen, and sterling at $1.3299.
"Surely that's going to lend support to the dollar," one market participant noted, while another added, "We think that the BOJ will need to strike a fairly hawkish note."
Falling oil prices have eased some concerns over inflation. Meanwhile, Asian foreign exchange markets were muted as the dollar steadied near its one-month high. Japanese Finance Minister Satsuki Katayama reiterated that Tokyo's stance of responding to currency moves as needed remains unchanged.