The dollar firmed against the yen and euro on Tuesday, lifted by strong manufacturing activity data from the US, while the pound slipped to a fresh three-decade low on concerns over a potential "hard Brexit" for Britain.
USD/JPY added to overnight gains and was up 0.65 percent at 102.49. EUR/USD fell below below 1.12 to 1.1164 more than 0.3 percent.
The greenback was buoyed after an Institute for Supply Management (ISM) survey showed the US manufacturing sector returned to expansion in September.
The yen was weighed by a reduction in risk aversion against the dollar, as concerns over Deutsche Bank have eased for now.
The dollar was particularly strong against the pound, which fell sharply since British Prime Minister Theresa May set a March deadline to begin the UK's formal departure process from the European Union.
GBP/USD fell to 1.2754 extending its drop after it fell to 1.2818 on Monday, breaking the previous 31-year low of 1.2798 plumbed on July 6 in the market turmoil following the late-June Brexit referendum.
The RBA left its cash rate at a record low of 1.5 percent as Australia's biggest-ever boom in apartment-building has helped support economic activity.
The Aussie fell to 0.7647, marginally lower from levels seen prior to the RBA rates announcement.
