RTT News reports that early Tuesday morning, the Dollar made gains against the Euro, emphasizing the key role the Federal Reserve may have to play to ensure that the US Dollar doesn’t fall too far behind it’s counterparts. It is feared that, despite recent economic growth, the US economy isn’t ready to stand on it’s own. Key figures in this argument include unemployment and the general weakness of the dollar. If the gains against the Euro continue, however, this may bode well for economic growth.

Key to the continued rise of the Dollar will be the outcome of the Federal Reserve Policy Meeting, which is expected to wrap up tomorrow. Despite the news that the European Union is expected to come out of recession in late 2009, the Dollar managed to gain more than a penny on the Euro.

Joaquín Almunia, Commissioner for Economic and Monetary Affairs said, “The EU economy is coming out of recession. This owes much to the ambitious measures taken by governments, central banks and the EU that have not only prevented a systemic meltdown but have kick-started the recovery. However, the road ahead is a challenging one.”

The dollar firmed up a bit versus the yen, moving back above the 90 mark. The pair has been choppy over the past few weeks, with the buck finding a measure of support after testing a 1995 low in October.

Meanwhile, the dollar was steady versus its Australian counterpart even after the RBA raised its interest rate for the second straight session. The dollar rose to .8920 versus the aussie, but leveled off to .8965 approaching 8 am ET.

Australia was the first G-20 member to begin raising interest rates earlier this year.

Photo (via SeekingAlpha)