The dollar fell against the yen on Tuesday, as the Japanese currency was boosted by its safe-haven status, as appetite for risk curbed by U.S. President Donald Trump's hardening defence over his immigration policies.
USD/JPY slipped to 113.24 but is trading above 113.80 at the start of the European session. It lost more than 1 percent overnight, after it was knocked off its peak above 115.000.
The latest blow to the dollar was given by Trump's order of a temporary ban over the weekend on the entry of refugees and people from seven Muslim-majority countries.
On Monday, the president fired acting U.S. Attorney General Sally Yates after she refused to defend Trump's new travel restrictions.
EUR/USD edged above 1.0700. The single currency had crept back from an 11-day low of 1.0620 on Monday. I was lifted by data showing German consumer price inflation hit the highest in 3-1/2 years and nearing the European Central Bank's price stability target of just under 2 percent.
The euro was poised to gain 1.7 percent against the dollar this month.
GBP/USD was up above 1.2515, but still within grasp of a near one-week low of 1.2466 plumbed overnight on nervousness ahead of Thursday's Bank of England policy meeting.
