The dollar held near a seven-month low on Tuesday, as traders awaited a signal from the Federal Reserve on whether it will cut interest rates as early as next month.
The dollar index, which measures the performance of the US currency against six rival currencies, approached its lowest level since January 2 at 101.82.
Elsewhere, the Japanese yen was slightly higher at 146.50 against the dollar, while the euro last traded at $1.1080, up 2.4 percent this month and on track for its strongest monthly performance since November.
The British pound was steady at $1.2985 in early trade, while the Australian dollar fell 0.12 percent to $0.6725 against its US counterpart, while the New Zealand dollar was little changed at $0.61135.
