On Tuesday, the dollar fell against other major currencies as investors prepare for the decision on monetary policy by the Federal Reserve, Friday's US employment, and the forthcoming presidential elections.
The USD Index, which tracks the greenback against a trade-weighted basket of six major rivals, fell to 98.26.
In October, the index gained 3% on expectations that the Federal Reserve will raise interest rates in December, despite the Friday drop related to the FBI announcement that it intends to reopen the case of the personal e-mails of Hillary Clinton as Secretary of State.
These reports have increased uncertainty about the outcome of the elections and Clinton’s prospects for the US presidential election expected on 8 November. There are concerns about a possible victory of the Republican candidate Donald Trump and people are worried what his victory could mean for the United States.
On Friday, investors are also awaiting the publication of the US employment report for October in search of signs that the economy is able to support the increase in interest rates this year.
On Wednesday, the Federal Reserve will publish its regular statement on monetary policy, but the rate increase before the presidential elections is unlikely.
The yen fell slightly: USD/JPY pair rose 0.215 to 105.03, trading very close to three-month highs at 105.52 on Friday.
The yen ignored the Bank of Japan's decision to refrain from new stimulus measures after the meeting, in spite of the warning on the inflation outlook.
The Reserve Bank of Australia on Tuesday also kept the interest rate unchanged at 1.5% and announced that within the next year the economic growth will be close to the potential.
AUD/USD reached 0.7673, the peak since last Wednesday.
The sterling has grown after the head of the Bank of England, Governor Mark Carney, said that he will prolong his stay at the head of the bank for another year, until the negotiations on the EU exit are completed.
GBP/USD pair is trading at 1.2244, while EUR/USD is almost unchanged at 1.0988.