The greenback muted on Tuesday but stayed close to the latest dips amid mounting concerns that the trade war could lead to a US recession, while the British pound fell amid worries about the U.K.'s economic growth.

The dollar index that gauges the greenback versus its major pairs traded steady at 103.001, It remains over 1% lower since the tariffs were suggested.

The dollar has struggled amid increasing recession fears, with markets expecting Fed to cut rates sooner to mitigate the impact of President Trump's tariffs.

EUR/USD ticked up by 1.0968, with the euro close to the highest level in six weeks.

The European Commission has prepared a list of U.S. imports worth €21 billion and plans to reduce it to €18 billion for tariff imposition.

GBP/USD dropped 1% to 1.2763, close to the recently touched lowest level in one month, as traders have begun to abandon the UK currency.

On Tuesday, Deutsche Bank forecasted a 0.1% monthly rebound in the U.K.'s GDP for February, after a 0.1% contraction in January. Despite the forecast, Deutsche Bank warns of greater downside risks, mainly from Trump’s tariffs.

USD/JPY advanced by 0.1% to 147.14, the Japanese yen eased on Tuesday but stayed near recent highs as demand for safe havens continued.