As the greenback as surged on Monday as rising oil prices stoked concerns about inflation and the potential for the U.S. Federal Reserve to increase interest rates at its next meeting.

The dollar index which gauges the greenback versus its major pairs nudged up by 0.4% at 102.560, after previously surpassing 103 for the first time in a week, exchanged.

After soaring the previous month, U.S. consumer spending increased only marginally in February, and inflation started to decline.

Nevertheless, the unexpected decision by OPEC+, to trim production once further by little over 1 million barrels per day on Sunday has changed the narrative and driven up oil prices.

EUR/USD traded 0.2% lower at 1.0812 after hitting the lowest level of 1.0788 due to the strengthening dollar.

GBP/USD slumped by 0.2% to 1.2306.

USD/JPY climbed 0.6% to 133.62 following a rise in the manufacturing PMI for Japan from February to March of 49.2, which represented the weakest contraction since November 2022.