On Tuesday, the greenback strengthened versus the euro and the yen as investors focused on the possibility that the Federal Reserve will keep raising interest rates. In contrast, the Australian dollar appreciated after the Reserve Bank of Australia (RBA) unexpectedly raised rates.

The consumer price report for May will be released on June 13 and the Fed is now under a blackout period before to the American central bank's meeting on June 13–14.

Data released on Friday showed that companies added 339,000 jobs in May. However, a rise in the unemployment rate to the highest level in 7 months at 3.7% suggested that the labor market was loosening up.

In order to assess the effects of rising rates on the economy, the Fed is anticipated to take a break in June. Fed funds futures traders anticipate that the Fed will then start raising rates again, with a 66% chance that there will be an increase of at least 25 basis points in July.

The dollar index edged up 0.26% at 104.25.

After delaying rate increases in March and April, the Bank of Canada's policy meeting on Wednesday may receive additional attention as a result of the RBA's unexpected action.