The US dollar traded higher in the European session after recovering from its biggest daily drop since July on Monday.
Against most major currencies, the dollar index, which measures the strength of the greenback, is trading at around 104.80.
Despite that, the market remains moving without direction ahead of the release of US consumer inflation data tomorrow night (Wednesday).
Today's European session was focused on UK employment data which showed signs of easing in the labor market but wage growth remained up in July.
As a result, the pound slipped below the 1.2500 level against the greenback, bringing it back to a three-month low.
Meanwhile, the euro also recorded a decline despite better-than-expected German economic sentiment data from the ZEW survey published in September.
Following Asian currencies, the Aussie and New Zealand dollars remained flat despite gains in Asian stock markets.
Chinese property giant Country Garden has received approval from its creditors to extend the repayment of six domestic bonds over three years.
Meanwhile, the yen pared its gains made on Monday, seeing it trade at around 146.80 against the US dollar.
The Canadian dollar was flat around its two-week high, still supported by stronger jobs data and higher crude oil trading.
