The dollar rose slightly on Tuesday against the euro and the British pound in a foreign exchange market catching its breath after a turbulent session the day before due to the discovery of a variant of the coronavirus.

Around 10:40 a.m. GMT (11:40 a.m. in Paris), the dollar gained 0.18% against the euro at 1.2221 dollars for one euro and 0.55% against the pound at 1.3391 dollars for one pound.

The day before, the pound had ended in the red as the borders of the United Kingdom were closed by several of its trading partners after the discovery of a new variant of the coronavirus, qualified as more contagious by the British authorities.

On Tuesday, the British currency started the session sharply higher against the dollar, before erasing this slight rebound in the middle of the morning.

"It really sets the tone for this week," say OFX analysts who warn that between the negotiations between Brussels and London, which continue a week and a half from the end of the post-Brexit transition period, and the new wave of Covid-19, the volatility on the pound was increased.

The dollar, a safe haven, ended Monday up slightly.

"The appetite for the dollar remains weak" due to the very accommodating monetary policy in the United States, explained analysts at Sucden.

The dollar had hit its lowest in two and a half years against several currencies before the start of the holiday season.

US parliamentarians on Monday approved a support plan for households and businesses affected by the pandemic, amounting to some 900 billion dollars.

After approval by the House of Representatives and then by the Senate, the plan can now be submitted to President Donald Trump for signature.

But the growth outlook for the US economy remains lackluster, "which could reinforce market pessimism on the dollar early next year," said Lee Hardman, analyst at MUFG.