After better-than-expected growth data from China, the dollar on Tuesday declined versus the majority of other major currencies, while the pound was bolstered by good pay data from Britain.

According to data released on Tuesday, China's gross domestic product advanced by 4.5% year over year in the first three months of the year, exceeding analyst predictions of a 4% growth as the COVID-19 limitations were relaxed, boosting the world's second-largest economy.

The dollar index that gauges the greenback versus its major pairs slipped by 0.4% to 101.67, post surging over 1% for the earlier two consecutive sessions.

With traders still anticipating rate cuts at the end of the year, the markets are pricing in a roughly 90% chance that the Fed will increase interest rates by 25 basis points at its next meeting in May.

EUR/USD edged up by 0.5% at $1.0978 post dropping for two days in a row.

GBP/USD ticked up by 0.5% at $1.2438, before the release of the inflation figures.

USD/JPY plunged by 0.3% to 134.02.