SINGAPORE, Oct 13 (Reuters) - The dollar held its ground at the start of Asian trading on Tuesday after a holiday for some markets in the US, as geopolitical risks rose after renewed attacks on energy infrastructure in the Middle East and Ukraine.
The US dollar index, which measures the greenback's strength against a basket of six currencies, was at 102.56 in subdued Asian trading after closing up 0.3% on Monday. The currency is hovering around its highest levels since April last year.
"The combination of higher relative interest rates, stronger US growth and increasing demand for defensive USD exposure continues to provide a powerful set of tailwinds for the greenback," said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne.
Rising energy costs and climbing US Treasury bond yields have supported the dollar against its major peers lately, with turmoil in French bond markets sapping the strength of the euro . The spread between French and German bonds widened on Monday.
The euro was flat at $1.1159 on Tuesday, while the British pound was also steady at $1.3209.