Tuesday saw the greenback touch the highest level in 1 month before Federal Reserve Chair Jerome Powell’s speech that would be closely watched by investors for clues about the potential trajectory of U.S. interest rates this year.

The US dollar index that gauges the greenback versus its major pairs edged up by 0.3% at 103.91.

The U.S. currency gained after Friday's jobs report caught traders off guard who were betting on an impending pause in the Fed's rate-hike cycle.

Markets are preparing for a coordinated attempt by Fed officials to browbeat investors into believing that terminal rates may hike over 5.25%.

EUR/USD dipped to the lowest level in five weeks at $1.0670 before dropping 0.5% to $1.0671.

GBP/USD sank to a one-month low of $1.1974 in the previous session, and was last trading 0.4% down against the dollar at $1.1982.

USD/JPY strived to recoup earlier losses with the dip of 0.5% at 131.925.