The dollar traded higher on the day as forex investors paired some gains and consolidated positions. It hovered not far from its lowest in more than a year against its major rivals as political turmoil was expected to continue weighing on the greenback following President Donald Trump's ouster of White House communications chief Anthony Scaramucci on Monday.
Uncertainty on whether the Fed would raise interest rates again this year was also putting pressure on the greenback. Traders' bets last reflected a roughly 46 percent chance of a Fed rate hike in December, according to CME Group's FedWatch tool.
The dollar index, which measures the greenback against a basket of six major rivals, was last up 0.23 percent at 93.07 after touching 92.777, the lowest since early May 2016.
USD/JPY bounced slightly to 110.40. The buck had earlier dipped below 110 yen for the first time in more than six weeks, touching 109.94 yen.
EUR/USD was down more than 0.30 percent to 1.1785 , but not far from a 2-1/2-year high of 1.1845 touched on Monday.
