Tuesday saw the U.S. dollar slipped to a three-month low as investors maintained their belief that the US economy is beginning to slow down post a hawkish cycle of tightening that began in March of 2022.

It is anticipated that the Federal Reserve would start to ease sometime in the upcoming year because to this slowdown. Based on the CME's FedWatch tool, U.S. rate futures were pricing in a 23 percent likelihood of a rate cut in March, and went up to almost a 50 percent probability in May.

The US figures released on Tuesday showed a persistent upward trend. After three consecutive months of falls, U.S. consumer confidence increased in November; yet, a survey revealed that households continued to expect a recession over the following year.

The dollar index that gauges the greenback versus its major pair dropped to 102.89, the weakest since the end of August.

EUR/USD edged up to 3-1/2-month high at $1.0985. It last was last traded at $1.0978 up to 0.2%.

GBP/USD ticked up to 0.3% at $1.2660, advancing to its highest level since September.

USD/JPY slipped by 0.2% to 148.33 yen, as the value of the Japanese yen has continued to rise from its earlier in the month low of 152 per dollar.