The dollar hovered near seven-week lows during Asian trade on Tuesday, as the impact of U.S President Donald Trump's protectionist trade stance worried traders.
The dollar index, slipped below 100.00 to 99.92, after falling to 99.899 on Monday, its lowest since Dec. 8. It has since recovered to 100.17 during the European session.
USD/JPY nudged up half a percentage point to 113.31 after notching a low of 112.52 earlier in the session, its weakest since Nov. 30, and well below its overnight high of 114.45.
Trump formally withdrew the United States from the now 11-nation Pacific Rim Trans-Pacific Partnership (TPP), distancing America from its Asian allies. He also intends to renegotiate the NAFTA free trade agreement between the United States, Canada and Mexico.
Treasury Secretary nominee Steven Mnuchin was quoted by Bloomberg as saying that an excessively strong dollar was negative in the short term, which put additional pressure on the dollar.
EUR/USD slid 0.2 percent lower to 1.0740, after earlier hitting 1.0774, its strongest level since Dec. 8.
The dollar's weakness gave a boost to sterling, which hit six-week highs as forex investors bet Britain's Supreme Court would rule later on Tuesday that the government needs parliamentary approval to trigger formal talks about the country's exit from the European Union.
GBP/USD traded just above 1.2500, just 0.05 percent lower, after earlier touching 1.2544, its loftiest level against the dollar since Dec. 15.
