The dollar index, which measures the greenback against six major peers, decreased 0.34 percent to 109.8400.
The euro, the largest component of the index, advanced, as market participants awaited a key policy meeting of the European Central Bank (ECB).
"After numerous members of the ECB Governing Council have recently put in a lot of effort to convince the market of their determination to curb inflation, expectations for the meeting on Thursday are likely to be high," Esther Reichelt, foreign exchange analyst at Commerzbank Research, said in a note.
In late New York trading, the euro increased to 0.9985 U.S. dollars from 0.9914 dollars in the previous session, and the British pound fell to 1.1502 U.S. dollars from 1.1527 dollars in the previous session. The Australian dollar increased to 0.6753 U.S. dollars from 0.6735 dollars.
The U.S. dollar bought 144.13 Japanese yen, higher than 142.84 Japanese yen of the previous session. The U.S. dollar was down to 0.9782 Swiss francs from 0.9843 Swiss francs, and it decreased to 1.3140 Canadian dollars from 1.3149 Canadian dollars.
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