The Federal Reserve kicks off its 2-day policy meeting on Tuesday. With the U.S. central bank widely expected to raise interest rates by a quarter point to a range between 1.0%-1.25%, investors' focus will be on any fresh hints on the pace of further tightening in the months to come and next year.

Market players will also pay close attention to details of the Fed's plan to reduce its $4.5 trillion balance sheet later this year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down 0.1% at 97.06, holding below Friday’s two-week highs of 97.47.

The drama in Washington continues on Tuesday, with Attorney General Jeff Sessions set to speak to the Senate Intelligence Committee about possible ties between President Donald Trump's campaign and Russian meddling in the 2016 presidential race.

Sessions will likely face tough questions at the open hearing over his dealings with Russian officials during the campaign and whether he had a role in the firing of former FBI Director James Comey.

Tuesday's testimony, scheduled to start at 18:30 GMT, will be the first for Sessions in a congressional hearing since he became attorney general.

In addition, U.S. lawmakers will grill Secretary of State Rex Tillerson about President Trump's unpopular budget, conflicting messages about foreign affairs and links between the administration and Russia, including his own ties, at congressional hearings starting on Tuesday.

Tillerson testifies before Foreign Relations and a Senate Appropriations subcommittee on Tuesday, then before House Foreign Affairs and appropriations panels on Wednesday.

The four hearings this week are a rare chance for members of the Senate and House of Representatives to question Tillerson, who has not testified publicly on Capitol Hill since his acrimonious confirmation hearing in January.

Global stock markets were mostly higher on Tuesday, as a global selloff that started in the sector last week showed signs of abating.

On Wall Street, the tech-heavy Nasdaq 100 futures pointed to a gain of 12 points, or roughly 0.2%, at the open, the blue-chip Dow futures rose 25 points, or around 0.1%, while the S&P 500 futures ticked up 4 points, or about 0.2%.

In Europe, stocks rebounded from seven-week lows, with Germany's DAX, France's CAC and Britain's FTSE all in the green in mid-morning trade, as shares in tech firms recovered and financials rose.

Earlier, Asian shares ended mostly in positive territory, recouping about half of the previous session's losses as regional tech shares regained their composure.

Oil prices edged higher for the third-straight session on Tuesday, as the market weighed ongoing efforts by major producers to cut output and reduce a global glut against a relentless increase in U.S. drilling activity.

U.S. crude was at $46.27 a barrel, up 19 cents, or around 0.4%, while Brent tacked on 20 cents to $48.49.

Industry group the American Petroleum Institute is due to release its weekly report at 20:30 GMT later on Tuesday.

Meanwhile, OPEC will release its monthly oil report later in the session. The data will give traders a better picture of whether a global rebalancing is taking place in the oil market.

The British pound pushed higher on Tuesday, after data showed that U.K. inflation resumed its upward march last month, accelerating more than forecast to the fastest pace in four years.

Consumer prices increased by 2.9% compared with a year earlier, its biggest increase since June 2013, the Office for National Statistics said. Sterling last traded at 1.2708 against the dollar, up around 0.4% on the day.

Meanwhile, the country’s political drama continued to unfold, as Prime Minister Theresa May survived a showdown with rank-and-file lawmakers and sought to prop up her minority government.