The greenback advanced touching three-month peak on Tuesday, post the release of CPI figures that demonstrated that the inflation advanced beyond projections in January, strengthening predictions that interest rates would remain unchanged in March.

CPI for January climbed by 0.35, exceeding economist projections of 0.2% according to a poll conducted by Reuters.

The dollar index that gauges the greenback versus its major pairs hit a three-month high at 104.87. It rose earliera 0.6% at 104.80.

EUR/USD dipped 0.6% to $1.0705, post previously edging down to the lowest level not seen since the half of November.

USD/JPY advanced to 150.58 yen, a three-month peak. It was last trading with a rise at 150.44 yen.

The yen has plunged over 5% versus the dollar till now this year, is consistently under pressure from investors who are lowering their predictions for the scope and speed of the Federal Reserve's easing their hawkish stance with interest rate hike.