The greenback was hovering near the lowest level hit in one week on Tuesday as markets anticipate the release of economic figures, while evaluating whether President-elect Donald Trump's tariff policies will correspond to his statement.

Investors have been factoring in a scenario in which the adoption of broad tariffs could drive up U.S. inflation, possibly restricting the Federal Reserve's capacity to lower interest rates and in turn bolstering the strength of the dollar.

On Monday, Trump dismissed a Wall Street Journal report claiming his aides were considering tariff proposals limited to essential imports.

Market attention will turn to the U.S. JOLTS job openings report and the December ISM Services Index later in the session.

The US dollar index that gauges the greenback versus its major pairs declined by 0.22% to 108.03, after hitting an overnight low of 107.74, its weakest level since December 30.

On January 2, the index reached 109.58, its highest level since November 2022, driven primarily by expectations that Trump's proposed fiscal stimulus, deregulation, and increased tariffs would stimulate U.S. economic growth.

The eurozone has been a key focus of Trump’s tariff threats, with the euro rising 0.18% to $1.0409 after reaching a one-week high of $1.0437 on Monday.

USD/JPY increased by 0.04%, reaching 157.69 yen, and earlier climbed to 158.425 yen, its highest level since July 17, bolstered by rising U.S. Treasury yields.