By Tommy Stubbington and Josie Cox 

The dollar rebounded against the euro Tuesday, after several sessions of losses, underscoring that many investors still deem the case for buying the buck intact ahead of an expected rise in U.S. interest rates, possibly as early as later this year.

The U.S. currency was 0.3% higher against the euro in late European trade, having fallen for several consecutive days after the Federal Reserve last week indicated it may not be ready to raise interest rates as soon as some investors had expected. Underpinning the greenback were figures showing that U.S. consumer prices had increased for the first time since October and had made their biggest gain since June.

The euro remains some way off its 12-year low of under $1.05 reached earlier this month after the European Central Bank launched its massive bond-buying program, but some strategists are still adamant that it will return to those levels and even head to parity against the dollar later this year, especially if a strong run of U.S. economic data materializes.

"We remain fundamentally bullish on the dollar and would look to use the [recent] consolidation as an occasion to add dollar longs at better levels," strategists at Credit Suisse wrote in a note, adding that they see the greenback as particularly attractive against the euro. One euro bought $1.0915 in recent trade.

Earlier in the day, the euro had traded higher against the dollar, with analysts saying that an improvement in the eurozone economy could at some point cast doubt on the future of the ECB's quantitative easing program.

On Monday, however, ECB President Mario Draghi firmly underlined that QE would continued until September 2016.

Elsewhere in European currency markets the Swiss franc also rose against the euro Tuesday, hitting its highest level since early February, with no immediately obvious trigger.

The franc has had a turbulent ride since January, when the country's central bank ended a 3 1/2 year policy of capping the strength of the franc at 1.20 to the euro. The franc soared after the decision, forcing many Swiss exporters to cut pay and move work abroad to stay profitable.

In equity markets Tuesday, European stocks rose after swinging between small losses and slim gains during the first half of the session.

The Stoxx Europe 600 added 0.3% on the day, after Monday's 0.7% loss. A weaker currency is generally seen as good news for European companies, which earn a big chunk of their revenue abroad, but have most of their costs in their home market.

Germany's DAX index added 0.9%, while France's CAC 40 rose 0.7%. Outside the eurozone, the U.K.'s FTSE 100 slipped 0.2% on the day.

In commodities markets, Brent crude oil slipped 0.7% to $55.50 a barrel, while gold slipped 0.2% higher at $1,190.10 an ounce.

Write to Tommy Stubbington at tommy.stubbington@wsj.com and Josie Cox at josie.cox@wsj.com

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