The safe-haven yen held firm in early trade on Tuesday, as investors remained cautious ahead of a two-day U.S. Federal Reserve meeting beginning later this session.
Markets were also skittish in the wake of a plunge in Chinese equity markets in the previous session, which helped the Japanese currency climb to a nearly two-week high.
The biggest rout in Chinese shares in eight years stoked concerns over slowing growth in the world's No. 2 economy on Monday, knocking down global equities and the prices of key commodities.
The dollar eased on safety bidding for other major currencies and the euro topped $1.11 for the first time in two weeks, supported by strong German business sentiment data.