The dollar index, which measures the greenback against six major peers, slipped 0.63 percent at 92.2782.
In late New York trading, the euro was up to 1.1936 U.S. dollars from 1.1864 dollars in the previous session, and the British pound increased to 1.3240 dollars from 1.3101 U.S. dollars in the previous session. The Australian dollar rose to 0.7243 U.S. dollar from 0.7207 dollar.
The U.S. dollar bought 105.39 Japanese yen, lower than 106.03 Japanese yen of the previous session. The U.S. dollar fell to 0.9028 Swiss franc from 0.9063 Swiss franc, and it decreased to 1.3158 Canadian dollars from 1.3196 Canadian dollars.
The Fed is set to publish the minutes from its latest policy meeting on Wednesday. The dollar has weakened considerably since the U.S. central bank's aggressive move to maintain market liquidity amid the coronavirus pandemic.
Meanwhile, experts noted that uncertainty in U.S. politics is likely to pressure the greenback.
"The market would have to be prepared for further uncertainties and possible (negative) surprises in U.S. politics even if the U.S. stock market might react positively short-term," Antje Praefcke, analyst at Commerzbank, said in a note Tuesday, adding "the downside risks for the dollar will continue to dominate one way or the other."
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