"The dollar is really going to struggle to hold onto gains," said Mazen Issa, senior foreign exchange strategist at TD Securities.
"The Fed has made it clear in no uncertain terms that they intend to look through transitory inflation factors and they are not perturbed by these moves," said Issa.
While currency markets were generally calm, signs of nervousness were evident in the bond markets where yields on 10-year US Treasury notes rose above 1.60% after tepid auction results.
The dollar index rose 0.2% at 91.047, bouncing from Monday's low of 90.679, its weakest level since March 3, though investors were not convinced a recent downtrend had ended.
The lira stood at 7.44 against the US dollar at 0720 GMT, firming from Wednesday's close of 7.5120. It climbed as much as 7.7840 on Monday as yields on US bonds rose.
The airline said in a statement Monday it expected its passenger levels by the end of March to be about 25% of its pre-COVID levels and it would fly to nearly 45% per cent of its pre-crisis destinations.