The U.S. dollar strengthened against other major currencies in the Asian session on Tuesday, as trader's speculation on the Federal Reserve interest rate cut faded.

Data on Monday showed that the U.S. manufacturing sector expanded in March for the first time since September 2022.

Data from the Institute for Supply Management showed that the manufacturing PMI jumped to 50.3 in March from 47.8 in February, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 48.4.

The robust manufacturing PMI data led to the rise of Treasury yields, with the yield on the benchmark ten-year note touching 4.31 percent, boosted the U.S. dollar.

The data is "along the lines of what we would like to see," Fed Chair Jerome Powell said on Friday at a conference and repeated the central bank is no hurry to cut interest rates. He also acknowledged the risks of leaving interest rates where they are now.

The U.S. dollar started trading higher against its major rivals from March 29th, 2024.

In the Asian trading now, the U.S. dollar rose to a 1-1/2-month high of 1.0729 against the euro, a 6-day high of 151.80 against the yen and a 5-day high of 0.9065 against the Swiss franc, from yesterday's closing quotes of 1.0743, 151.63 and 0.9041, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.06 against the euro, 153.00 against the yen and 0.91 against the franc.

Against the pound and the Canadian dollar, the greenback edged up to 1.2541 and 1.3584 from yesterday's closing quotes of 1.2550 and 1.3569, respectively. On the upside, 1.24 against the pound and 1.37 against the loonie is seen as the next resistance level for the greenback.

Looking ahead, Manufacturing PMI reports for March from U.K. and various European economies, U.K. mortgage approvals data for February, are due to be released in the European session.

At 8:00 am ET, Destatis is set to release Germany's flash inflation figures for March. Economists forecast consumer price inflation to ease to 2.2 percent from 2.5 percent in February.

In the New York session, U.S. factory orders for February is slated for release.

At 10:10 am ET, Federal Reserve Board Governor Michelle Bowman will speak virtually on "Bank Mergers and Acquisitions, and De Novo Bank Formation: Implications for the Future of the Banking System" before the Workshop on the Future of Banking hosted by the Federal Reserve Bank of Kansas City, in Washington D.C., U.S.

At 12:00 pm ET, Federal Reserve Bank of New York President John Williams will moderate a discussion with Jeremy Siegel, professor of finance at the Wharton School of the University of Pennsylvania, before the Economic Club of New York, in New York, U.S.

Five minutes later, Federal Reserve Bank of Cleveland President Loretta Mester speaks on the economic outlook before the Cleveland Association for Business Economics and Team NEO Luncheon, in Cleveland, U.S.

At 1:30 pm ET, Federal Reserve Bank of San Francisco President Mary Daly will participate in hybrid fireside chat in partnership with the Henderson Chamber of Commerce, Latin Chamber of Commerce Nevada, and Vegas Chamber of Commerce, in Las Vegas, in U.S.

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