The dollar steadied somewhat on Tuesday as it pulled ahead after heavy losses against the yen, the euro and the Swiss franc, supported by hopes for U.S. economic stimulus and a bounce in Treasury yields.

The greenback started to grind higher as U.S. stock futures rose after U.S. President Donald Trump said the White House will hold a news conference on Tuesday about economic measures in response to the coronavirus outbreak.

U.S. Treasury Secretary Steve Mnuchin also said the White House will meet with bank executives this week in a sign the U.S. government is preparing to roll out more measures to soften the blow from the spread of the flu-like virus.

However, analysts say it is too early to call a bottom in the dollar, which was pummeled on Monday after a price war between Saudi Arabia and Russia triggered the biggest daily rout in oil prices since the 1991 Gulf War.

“Expectations for a coordinated policy response are something that is evolving and ultimately this could help,” said Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney.

“But in the short term the dollar is driven by expectations for U.S. Federal Reserve easing.”

The dollar rose 1.79% to 104.10 yen JPY=EBS, pulling back from the lowest in more than three years.

The yen also wobbled against major crosses, such as the euro EURJPY=EBS and the Australian dollar AUDJPY=EBS, after Bank of Japan officials indicated their readiness to ramp up stimulus if needed before a policy meeting next week.

Against the euro EUR=EBS, the greenback rose 0.42% to $1.1383 after falling on Monday to its lowest in more than a year against the common currency.

The dollar rose 0.93% to 0.9338 Swiss franc CHF=EBS on Tuesday after three days of heavy selling pushed it to the lowest in almost five years. Data suggests the Swiss National Bank is now ramping up its market interventions to weaken its currency.

Against the pound GBP=D3, the U.S. currency rose 0.45% to $1.3067.

The dollar gradually accelerated after U.S. stock futures opened higher ESc1 and Treasury yields US10YT=RR climbed off record lows.

Oil futures also bounced in Asia on Tuesday after the previous day’s dive, as global markets tried to regain some composure, but many traders warn that recent turmoil has been so dramatic that risks are still tilted down.

The plunge in crude prices on Monday was yet another jolt to financial markets, which were already reeling as investors counted the mounting economic costs of a global coronavirus epidemic.

In the onshore market, the yuan CNY=CFXS rose a tad to 6.9370 per dollar. Chinese officials said growth in the number of new cases of the coronavirus, which emerged in the central Chinese province of Hubei late last year, is slowing.

However, its rapid spread in Italy and the United States is likely to keep investors on edge.

Money markets show the Fed, which stunned investors with a surprise 50 basis point rate cut last week, is likely to ease policy further in the future.

The Fed is also injecting cash into the banking system in a sign of underlying financing stress in the world’s largest economy.

Expectations for Fed easing are likely to bring the dollar and U.S. yields back down, but for the time being on Tuesday the greenback got a brief respite.

The currencies of oil-producing countries also managed to rise slightly after a mauling on Monday.

The Australian dollar AUD=D3 eased 0.14%, and the New Zealand dollar NXD=D3 shed 0.3%, reflecting the greenback's broad bounce.

Reuters