On Tuesday, the dollar lost strength after U.S. consumer price figures indicated inflation weakened in October, raising the likelihood that the Fed will stop raising interest rates.

Following a 0.4% increase in September, the Labor Department's Bureau of Labor Statistics (BLS) reported that U.S. consumer prices steadied the previous month due to reduced gas costs.

The consumer price index (CPI) increased 3.2% in the 12 months ending in October, following a 3.7% increase in September.

The dollar index that gauges the greenback versus its major pairs dipped 0.97% at 104.600810.

EUR/USD edged up by 1.13% to $1.0818.

USD/JPY climbed by 0.59% to 150.79 per dollar.

Fed Chair Jerome Powell and other policymakers in recent days have tried to push back against market expectations that the U.S. central bank was done with its hawkish rate raise cycle.

The yen was under pressure earlier after it made a brief surge against the dollar on Monday, touching a one-year low. This move was ascribed to option trading frenzy rather than Japanese government action.