On Tuesday, the dollar declines against other major currencies as markets await the publication of the US government report on employment in the US non-farm payrolls to assess the likelihood that the Federal Reserve will raise rates in September.
The EUR/USD pair rose 0.25% to 1.0978.
The dollar showed growth on increased expectations that in the context of improvements of US economy, the Fed will resort to higher interest rates in the coming months, possibly as early as September.
Investors are awaiting the publication of the government's report on employment in the US non-farm payrolls scheduled for Friday. According to the consensus forecast, the report will show an increase in the number of jobs for last month at 215000.
Monthly growth at above 200 000 is considered by economists as a high rate of employment growth.
The dollar fell after disappointing US economic reports on Monday.
Official data showed that consumer spending growth slowed in June, while a separate report showed that manufacturing activity in the US fell in July.
Another report showed that the amount of expenditure in the construction sector in the US for June showed the smallest increase in five months.
The dollar was little changed against the pound; GBP/USD pair was traded at 1.5582.
Earlier, Markit data showed that the index of business activity in the construction sector in UK fell from 58.1 in June, the peak of the last four months, to 57.1 in July. Economists had expected the index to rise to 58.4.
Dollar is steady against the yen, USD/JPY pair being traded at 123.97, and fell against the Swiss franc, with USD/CHF losing 0.16% to 0.9677.
Dollars of Australia and New Zealand rose; AUD/USD jumped 1.42% to 0.7388, and the pair NZD/USD rose 0.58% to 0.6601.
The Australian dollar strengthened on Tuesday data which showed growth in retail sales in Australia in June by 0.7%, instead of the expected growth of 0.5%.
A separate report showed that Australia's trade deficit narrowed in June to A$ 2.6 billion from the revised A$ 2.68 billion in May. Analysts had forecast expansion of the trade deficit in June to A$ 3.10 billion.
In addition, the Reserve Bank of Australia decided to leave interest rates at 2.00%, as many expected.
Meanwhile, the USD/CAD pair fell 0.20% to 1.3130, retreating from 11-year peak of 1.3176 reached on Monday.
The USD index, which tracks the US currency against a basket of six major rivals, went down 0.19% to 97.41.