The dollar regained some of its losses after slipping to a two-week low against the yen in Asian trading on Monday. The move lacked momentum as forex investors awaited this week's speech by U.S. President Donald Trump for clues on tax reform.
Trump is expected to make his first major policy address to Congress on Tuesday. The speech should include some details of his infrastructure spending and tax plans, but some market participants worry that a lack of fresh direction could disappoint investors and weigh on the dollar.
USD/JPY bounced more than 0.3 percent to 112.34, after dipping as low as 111.920 earlier in the session, its lowest since Feb. 9.
EUR/USD was buoyed up to 1.0591 on the day, but concerns about France's upcoming election continued to weigh on the single currency.
Cable skidded sharply to 1.2379. The Scottish government is becoming more confident it can win a new independence referendum and is considering calling one next year as Britain exits the European Union, sources close to the Edinburgh administration say.
The dollar index, which tracks the greenback against a basket of its major rivals, benefited from sterling's weakness and edged up 0.1 percent to 101.16.
