By Gina Lee

Investing.com – The dollar was down on Tuesday morning in Asia, while . However, the debate on how aggressively the U.S. should hike interest rate capped the dollar’s losses.

That tracks the greenback relative to other currencies fell 0.15% by 12:29 ET (5:29 GMT)

It fell by 0.19%, to 115.31

Both the pair declined by 0.15%, to 0.7115. However, they gained 0.02% to 0.6616.

While the pair fell 0.05% at 6.3542, it rose 0.06% at 1.353535.

In early Asian trading the euro stood at $1.1308 after having hit $1.1278 on Monday. This was its lowest level in over a week. On Monday, the dollar was at its lowest level in two weeks due to moves that were also prudent elsewhere.

Volodymyr Zelenskiy, the Ukrainian president, called for citizens to raise the flags of their country from the buildings. He also asked them to sing in unison the national anthem on February 16, which is the date when Western media predicted an invasion by Russia. The comments spooked investors, but the comments were meant to be “sarcastic,” according to Zelenskiy’s office.

Federal Reserve officials in the United States continue to debate how aggressively they should begin interest rate increases at their March meeting. James Bullard of the St. Louis Fed, who had called for an increase of 50 basis points in interest rates during the week before, has repeated his call to raise them faster Monday.

However, Bullard’s colleagues were more cautious in their remarks, and the Fed will also release the . Minutes from the Fed’s own meeting were released earlier in the day.

Kim Mundy, senior currency strategist at Commonwealth Bank of Australia says tensions in Ukraine as well as more optimistic outlooks for Fed funds rates are supportive for dollar over the short term.

You can see the impact of USD/JPY to determine which one is more important. In the past few days we’ve seen USD/JPY trade a little weaker, which indicates that markets are well aware of what is happening at the Ukraine border. “We just need to watch the headlines and keep an eye on what’s happening,” she said.

The safe-haven yen is usually a beneficiary of runs towards safety, while the Bank of Japan’s dovish monetary policy compared with the U.S. policy is likely to push the yen even lower. The Japanese central banking stated during the past week it would purchase unlimited 10-year Treasury bonds at 0.2%. Investors did not test the 0.25% limit on Monday.

Although the Russian ruble was volatile, it strengthened on Monday. It fell slightly again during the Asian session.