The greenback retreated to 160 yen level on Tuesday, as concerns about intervention by Japanese officials discouraged traders from pushing the yen too hard against other currencies.

USD/JPY dipped 0.1% at 159.43, traders were cautious, sticking to a narrow range, hesitant to breach a level that had triggered a 9.79 trillion-yen ($61.33 billion) currency intervention by Tokyo in late April and early May.

As a result, the yen remained restrained, avoiding new lows against other currencies, while sterling hovered just below a 16-year high of 202.34 yen.

The yen's recent drop followed the Bank of Japan's (BOJ) June policy meeting, where investors were let down as policymakers refrained from immediately scaling back the BOJ's extensive bond purchases.

The dollar showed a slight decline in anticipation of Friday's release of the U.S. personal consumption expenditures (PCE) price index, which is the Federal Reserve's preferred gauge for inflation.

The dollar index that gauges the greenback versus its major pairs steadied at 105.5.

EUR/USD plunged 0.1% to $1.0721, poised for a monthly drop of 1%.

GBP/USD edged up 0.1% at $1.2691.

AUD/USD muted at $0.6656.