The dollar was softer against riskier currencies on Tuesday on rising optimism that U.S. lawmakers could agree on new stimulus to blunt the economic impact of the coronavirus.
Risk appetite also improved after U.S. President Donald Trump left the hospital and returned to the White House following treatment for Covid-19.
The euro traded at $1.1788, following a gain of 0.58% on Monday.
The pound changed hands at $1.2990, tackling its resistance around $1.30, despite concerns about a no-deal Brexit.
The dollar advanced on the safe-haven yen to 105.77 yen, near its highest levels in three weeks.
The dollar’s index against a basket of six major currencies dropped to 93.422, touching its lowest level in two weeks.