The U.S. dollar dipped against a currency basket on Tuesday amid expectations the Federal Reserve will hold off on raising rates this year due to weakness in global growth, while the pound crept higher before Britain's parliamentary vote on its Brexit deal.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 95.21 by 03:06 AM ET (08:06 AM GMT) after edging down to 95.06 overnight.
The pound briefly rose back above the 1.29 level ahead of a vote on the government’s Brexit deal with the EU in the British parliament.
GBP/USD was up 0.17% to 1.2881 after rising as high as 1.2916 earlier, while EUR/GBP slipped 0.13% to 0.8902.
The euro was holding steady against the U.S. currency, with EUR/USD changing hands at 1.1469.
Elsewhere, the Australian and New Zealand dollars, both considered proxies for global risk appetite, strengthened, having recovered from Monday's lows.
Sentiment was aided by a fresh round of commitments from Chinese policymakers to stimulate their economy though fiscal and monetary steps.
AUD/USD was up 0.31% to 0.7261, while NZD/USD added on 0.32% to trade at 0.6840.