The U.S. dollar was higher against its major counterparts in the Asian session on Tuesday, as the spread of the Delta variant of Covid-19 triggered fears about the pace of economic recovery, while hawkish remarks from the U.S. Federal Reserve policy makers supported prospects of a tightening of monetary policy sooner rather later.

Concerns prevailed over the imposition of tougher restrictions in countries such as Australia, Malaysia and Thailand. Indonesia is considering imposing stricter restrictions starting Wednesday amid surging infections.

Investors await U.S. jobs report due on Friday to determine the pace of improvement in the labor market. Other key economic data due this week include pending home sales, ADP private sector payrolls, jobless claims and ISM manufacturing activity.

Richmond Fed President Thomas Barkin said on Monday that the central bank has made "substantial further progress" toward its inflation goal so as to begin the withdrawal of stimulus.

Barkin added that he would decide next year whether the U.S. central bank had reached its inflation and employment goals to justify a rate hike.

The greenback spiked higher to a 1-week high of 1.2349 against the loonie, 6-day highs of 0.7023 against the kiwi and 0.7549 against the aussie, after falling to 1.2329, 0.7051 and 0.7571, respectively in early deals. The greenback may find resistance around 1.25 against the loonie, 0.68 against the kiwi and 0.72 against the aussie.

Reversing from its early lows of 0.9191 against the franc and 1.1930 against the euro, the greenback edged higher to 0.9207 and 1.1908, respectively. If the greenback rises further, 0.94 and 1.17 are likely seen as its next resistance levels against the franc and the euro, respectively.

The greenback hit an 8-day high of 1.3859 against the pound, from an early low of 1.3884, and held steady afterwards. The greenback is seen facing resistance around the 1.36 level.

The greenback rebounded to 110.69 against the yen, after a fall to a 1-week low of 110.45 at 9 pm ET. The greenback may locate resistance around the 112 level.

Looking ahead, U.K. mortgage approvals for May and Eurozone economic confidence index for June are due in the European session.

At 8:00 am ET, German preliminary CPI for June is scheduled for release.

U.S. consumer confidence index for June, FHFA's house price index and S&P/Case-Shiller home price index for April will be out in the New York session.

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