The greenback muted on Tuesday as investors anticipate key job figures by the end of the week on Friday as it will largely impact the pace of interest rate cut.

The dollar index that gauges the greenback versus its major pairs steadied at 101.617, just lower a bit from the highest level of two-weeks at 101.79. 

Later today, the U.S. ISM manufacturing survey will be the first key indicator released in a significant week for U.S. economic data. It's anticipated to reveal that the country's manufacturing sector is still experiencing contraction.

This week, the focus will be on the labor market as Fed policymakers seek confirmation to begin easing monetary policy. This follows Fed Chair Jerome Powell's recent signal of impending interest rate cuts due to concerns about the labor market.

The highlight of the week will be Friday's nonfarm payrolls report, especially after last month's labor data missed expectations, triggering a sharp equity market selloff over recession concerns.

EUR/USD dipped 0.1% to 1.1061, hovering near the two-week low of 1.1042 reached in the prior session, following data that indicated eurozone manufacturing activity continued to contract in August.

GBP/USD fell by 0.2% to 1.3129, as the U.K. data calendar was calm this week.

The British pound had a strong performance in August, rising over 2% last month, driven by expectations that the Bank of England will maintain higher interest rates for a longer period compared to the United States and the eurozone.

USD/JPY slipped 0.6% to 146.03, after reaching a two-week high of 147.16 on Monday, it pulled back following a private-sector survey that revealed Japan's factory activity contracted once again in August.