The US dollar touched three-month peak versus the yen on Tuesday, however, it saw only minor fluctuations against most major currencies as traders took a cautious approach ahead of next week's U.S. election and a wave of economic releases.

The dollar index that gauges the greenback versus its major pairs ticked up by 0.12% at 153.47 yen. BOJ is set to announce its monetary policy decision on Thursday, with many anticipating that interest rates will remain unchanged.

The ruling coalition in Japan lost its parliamentary majority in the weekend elections, creating uncertainty in both the political and monetary landscape, which has impacted the yen negatively.

This week's data schedule features the September U.S. core personal consumption expenditures price index, which is the Federal Reserve's favored inflation gauge, set to be released on Thursday, along with a series of job reports.

The dollar index has increased by 3.6% in October, representing its strongest monthly performance since April 2022. It was last recorded at 104.34 and has gained against all major currencies this year, with the exception of the pound.

EUR/USD muted at $1.0815 dipping 0.27%.

GBP/USD ticked up by 0.26% to 1.3006 before the announcement of the Labour government's first budget.