The dollar slipped versus a basket of major currencies on Tuesday after U.S. President Donald Trump said China and the EU are manipulating their currencies and criticized Federal Reserve for raising interest rates.
The dollar index dropped 0.37 percent to 95.554 after dipping as low as 95.440, its weakest level since Aug. 9.
The yen was virtually flat at 110.08 yen, erasing gains after climbing as high as 109.775 yen earlier. The greenback on Tuesday slumped below the key 110 yen level for the first time since June 28.
The euro surged 0.36 percent to $1.15225, reversing some gains after trading at $1.1544 in morning deals. The single currency fell to a 13-month trough early last week amid the Turkish financial crisis.
The Chinese yuan was steady versus the dollar, inching 0.07 percent higher to 6.8326 in offshore trading.
The Aussie added 0.13 percent to $0.7350, despite turmoil in domestic politics.