Doha: The US dollar firmed on Tuesday as the Middle East tensions weighed on sentiment, while the yen held steady amid global market volatility.

According to Qatar News Agency, the Australian dollar remained largely unchanged at $0.7168 ahead of a policy decision from the Reserve Bank of Australia later in the day. The central bank is widely expected to raise rates for the third consecutive meeting to address inflation concerns.

This development bolstered the dollar, with the euro maintaining its overnight losses and last trading at $1.1693. Meanwhile, the British pound was observed at $1.353. The dollar index, which tracks the US currency against six major units, remained steady at 98.452 after a 0.3% rise on Monday.

The yen was trading at 157.22 per US dollar, not far from its strongest level in two months following several instances of sharp gains since Thursday.