The greenback ticked up further on Tuesday, observing an increase in the yield on US Treasury bonds as investors wondered the rationale behind market pricing for interest rate reduction this year.

Money market traders estimate that the Fed will ease policy by 135 bps in 2024, with a 60% probability that they will begin reducing in March.

The US dollar index that gauges the greenback versus its major pairs added 0.1% at 102.42, post surging by 1% the previous week.

EUR/USD traded at $1.0934, not close to the latest three-week dips of $1.0877.

GBP/USD shed 0.2% to $1.2721.

Data released on Tuesday in Asia revealed that core inflation in the capital of Japan decreased in December for the second consecutive month, relieving some of the pressure on the Bank of Japan to quickly end its extremely loose monetary policy.

After the release of Tokyo inflation figures, the yen barely moved; it was last trading at 144.01 per dollar, up 0.1%.