USD strengthened against other major currencies in the European session on Tuesday, rebounding after a plunge on Monday, supported by rising hopes that the Trump administration would introduce stimulus to cushion the economic impact of the coronavirus outbreak. 

The U.S. Dollar Index, measuring the U.S. dollar value against a basket of foreign currencies, rose by 0.97% to 95.82.

The U.S. President Donald Trump said on Monday his administration would discuss with Congress "a possible payroll tax cut or relief, substantial relief, very substantial relief" to support the economy and that "major" economic announcements would be made on Tuesday.

The U.S. Treasury Secretary Steven Mnuchin, meanwhile, downplayed the possibility of a recession, stating the fluctuations in the stock market reflected the oil shock rather than weakness in the U.S. economy. “This is not like the financial crisis where we don’t know the end in sight. This is about providing proper tools and liquidity to get through the next few months,” he said. “The economy will be in very good shape a year from now.”