The dollar posted modest gains on Tuesday, staying firm against the euro and the pound as fiscal and political concerns continued to weigh on Europe's currencies.

Analysts said they were seeing consolidation following a significant sell-off in the pound on Monday, which in turn pulled the euro lower and gave the greenback a boost across the board.

"The focus today is on consolidation following the big moves we saw on Monday, but the general dollar-positive tone remains in place against the pound and the euro in particular," said Lauren Rosborough, currency analyst at Westpac. >>