The dollar index, which measures the greenback against six major peers, fell 0.16 percent at 97.6758, following a 0.5-percent dip in the previous session.
In late New York trading on Tuesday, the euro rose to 1.1171 U.S. dollars from 1.1132 dollars in the previous session, and the British pound was up to 1.2541 dollars from 1.2493 U.S. dollars in the previous session. The Australian dollar rose to 0.6887 U.S. dollar from 0.6798 dollar.
The U.S. dollar bought 108.71 Japanese yen, higher than 107.59 Japanese yen of the previous session. The U.S. dollar rose to 0.9621 Swiss franc from 0.9617 Swiss franc, and it was down to 1.3515 Canadian dollars from 1.3577 Canadian dollars.
"Investors extended a retreat from the U.S. dollar over the last 24 hours," analysts at UBS said in a note on Tuesday, adding the move "stemmed from a positive read on the global recovery path, aided by the China PMI reading and the anticipation of more EU monetary and fiscal support."
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