The U.S. dollar extended gains against its most major counterparts in the New York session on Tuesday, as Federal Reserve Chair Jerome Powell said that there is no rush to cut interest rates given a lack of progress on inflation returning to the target.

Policymakers will likely require more time than expected to achieve confidence that inflation is on the path to 2 percent, Powell said during a panel discussion at the Wilson Center.

"Recent data shows solid growth and continued strength in the labor market but also a lack of further progress so far this year on returning to our 2 percent inflation goal," Powell said.

Until inflation shows more progress, rates are likely to remain higher for a longer period, Powell added.

According to CME Group's FedWatch Tool, the chances of a 25 basis point rate cut in June have tumbled to 15.0 percent compared to 56.1 percent just a week ago.

The greenback climbed to more than a 5-month high of 1.0601 against the euro and near a 5-month high of 1.2405 against the pound, from yesterday's close of 1.0624 and 1.2445, respectively.

The greenback appreciated to more than 5-month highs of 0.6389 against the aussie, 0.5868 against the kiwi and 1.3846 against the loonie, from yesterday's closing values of 0.6441, 0.5903 and 1.3787, respectively.

The greenback touched 154.78 against the yen, its highest level since 1990.

The next possible resistance for the currency is seen around 1.05 against the euro, 1.23 against the pound, 0.62 against the aussie, 0.57 against the kiwi, 1.40 against the loonie and 158.00 against the yen.

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