The greenback was losing ground on Tuesday, due to profit-taking, partially due to the minor strengthening of the yen, as representatives of the Japanese government persisted in their adamant defence of the yen.

The market's attention is focused on the Federal Reserve's preferred inflation gauge, which is expected to be released on Friday and may influence the direction of the country's interest rate outlook, given the week's comparatively light schedule of economic figures.

After many central bank meetings last week, there was a change in the forecast for global interest rates, which caused the dollar to reach a one-month high compared to its main competitors.

While Fed persist on three rates trim this year, other central banks hinted that a dovish stance is considered.

The dollar index that gauges the greenback versus its major pairs dipped 104.14.

EUR/USD edged up by 0.08% to $1.08465.

GBP/USD added 0.1% to $1.2649, far from the one-month low of $1.25755 reached the previous week.

USD/JPY slumped by 0.02% to 151.385, encountering large resistance close to 152 level on worries of Japanese official intervention.