After a strong run, the U.S. dollar was muted on Tuesday as traders refrained from placing significant wagers in anticipation of a flood of economic data this week. In contrast, the Japanese yen lingered close to levels that prompted intervention last year.

The dollar depreciated by 0.2% on Monday and was down 0.06% on Tuesday against a basket of currencies.

The index has increased by 2% this month and is coming off a run of six consecutive weeks of gains as robust U.S. economic data increased hopes that rates may rise for an extended period of time.

The preferred inflation measure of the Fed, personal consumption expenditure data, is due on Thursday, while non-farm payrolls will be revealed on Friday. However, the tone will be set by job openings data for July, which will be issued later on Tuesday. According to economists surveyed by Reuters, job opportunities will total 9.465 million, a little decrease from June.

According to the CME FedWatch tool, markets are pricing in a 78% chance of the Fed keeping interest rates unchanged next month, but the chances of a hike by the November meeting are now closer to 60% than they were a week ago.

EUR/USD advanced by 0.1% to $1.0828, as Hardman’s statement shored up the currency at $1.08 level.

GBP/USD edged up by 0.17% at $1.262, reversing last week's two-month lows.

USD/JPY muted at 146.4 to the dollar, but it was still close to 146.75, which was the currency's lowest point since November 9.