The Dollar held steady on Tuesday, with the index – measuring the currency against six peers – rising under 0.1% to 105.23, after falling to a low of 104.52 on Friday.

The index has increased close to 4% so far this year, but last week declined nearly 1% as the Federal Reserve ruled out additional rate hikes and there were indications of a weakening US labour market, Reuters reports.

“Overall we're still more structurally positive on US macro as a whole and think that is what is going to support the Dollar in the coming year,” stated Kirstine Kundby-Nielsen, FX analyst at Danske Bank.

At the time of writing the Dollar rose 0.1% to 154.06 Yen, after previously rising to a high of 154.60.

At the end of last week, the greenback declined to a low of 151.86 Yen for the first time since 10 April, as weak US jobs data added to losses following Bank of Japan data indicating potential intervention of around 9 trillion Yen ($58 billion).

Elsewhere, in Australia, the Dollar fell from close to a two-month top against the US Dollar after the Reserve Bank of Australia (RBA) chose not to give stronger signals of a hawkish stance, contrary to what some traders had expected.

Following the central bank’s widely forecast decision, governor Michele Bullock stated that the board believes monetary policy is appropriately set to bring inflation back to target. Bullock added that the RBA hopes the economy won't need to undergo further interest rate increases.

At the time of writing the Aussie Dollar was down 0.5% at $0.6593, away from Friday’s high of $0.6650, a level last seen in early March.

“It was a bit of 'buy the rumour and sell the fact,'” according to James Kniveton, senior corporate FX dealer at Convera.

“They (the RBA) remain vigilant to upside risk, but the hawkish bias the markets expected has not eventuated.”