On Monday, the dollar weakened against other major competitors, but remains at recent highs amid expectations that the Federal Reserve is close to raising interest rates this week.
The USD Index, which tracks the greenback against a trade-weighted basket of six major rivals, fell to 101.56.
The markets do not doubt that the Fed will raise rates for the first time this year, after the Wednesday meeting. According to the forecast in regard to the Fed rate hike, now the futures on the federal funds assess the likelihood of a rate hike at the meeting of the US central bank on 13-14 December at 100%.
The Fed is also expected to release updated economic forecasts, while the markets will be watching for signs about the future inflation and the expected pace of rate hikes in 2017.
The high pace of rate increase strengthens the dollar, making it more attractive for investors who are looking for profit.
The dollar rose against the yen, after a growth during the previous session: USD/JPY pair strengthened by 0.55% to 116.00, the highest since February 8.
The yen showed little reaction to the Japanese data that indicated that machinery orders rose in October for the first time in three months, pointing to an increase in capital expenditures.
The euro rose: EUR/USD pair rose 0.13% to 1.0571.
However, the single currency remained under pressure after the European Central Bank said the purchase program extends terms of assets by nine months, but cuts its volume.
The pound was little changed: GBP/USD pair is trading at 1.2596.
At the same time, the Canadian dollar rose to a seven-week high against the dollar amid the oil price rally and the subsequent growth of the commodity currencies.
USD/CAD went down 0.52% to 1.3120, the lowest level since October 20.