The dollar inched up against the yen on Tuesday after Japan's central bank governor raised the possibility of further policy easing, while the euro's latest bounce faded as the focus shifted back to economic challenges in the bloc.
The greenback rose to 110.615 yen from a low of 110.45 hit earlier in the session.
The dollar index versus a basket of six major currencies was nearly flat at 96.914 after ending the previous session unchanged. U.S. financial markets were closed on Monday for the Presidents' Day holiday.
The euro was down 0.15 percent at $1.1297. It edged up 0.16 percent overnight, pulling away from a three-month low of $1.1234.
The single currency had been buoyed by improved investor sentiment as expectations increased for an easing of the U.S.-China trade conflict after both sides reported progress in talks.