The dollar index , which measures the greenback against a basket of six rivals, made a brief breach of Monday's one-month highs, and was last trading at 103.52, roughly flat on the day.
Sterling was last 0.1% higher against the dollar at $1.20275, after tumbling to a one-month low of $1.2006 in the previous session.
In Asia, the Japanese yen attempted to make back Monday's losses, with the dollar-yen pair down 0.6% at $131.78, moving away from Monday's one-month low of 132.90 per dollar.
A newspaper report on Monday said Japan's government has sounded out Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya to succeed incumbent Haruhiko Kuroda as central bank governor.
Reporting by Rae Wee and Susan Mathew; Editing by Muralikumar Anantharaman, Kenneth Maxwell and Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.