Dollar is consolidating after the rally on Monday

The dollar settled on Tuesday following its rally the day before. Appreciation of the value has been triggered by investors that used the currency as a safe haven. This was due to the growing rate of COVID-19 in China.

The largest outbreak of coronavirus has been reported in the country. The Chinese government ended up having to tighten restrictive measures.

Joseph Capurso, head of international economics at Commonwealth Bank of China, said the situation in China is worsening. Restrictions on mobility within the country could have a negative impact on the economy as a whole. The consequences are likely to be inevitable. 

With respect to suspending the dollar's rise, Capurso noted the following: after the rapid appreciation that occurred on November 21, the dollar may have entered a phase of consolidation.