On Tuesday, the greenback began to decline from recent 10-weak levels as the world's risk sentiment improved following the negative effects of a rise in U.S. government bond yields and a slowing Chinese economy.

The dollar has gained ground this month as a result of rising U.S. Treasury rates—the benchmark 10-year yields reached 16-year highs on Tuesday—and concerns about China.

The dollar index that gauges the greenback versus its major pairs was slightly lower at 103.30 and maintained its position below Friday's the highest level in 10 weeks of 103.68.

EUR/USD dipped 0.1% at $1.0885. Sterling was a touch firmer

GBP/USD edged at $1.2760 but off session peaks at around $1.28.

USD/JPY dipped 0.5% while it previously slipped 0.3% on the day at 145.76 yen and down from the latest 9 months highs.

As a hint of underlying surge in the American currency, the dollar recovered some of its early losses against European currencies.