The difference in Fed and ECB monetary policy was considered to be bullish for the greenback.
Outgoing Fed's Chairwoman Janet Yellen is expected to announce on Wednesday more interest-rate hikes to come in 2018 after increasing the Fed’s benchmark by a quarter of a percentage point.
On Tuesday, the euro was firm at $1.1772. The dollar traded at 113.48 yen.
Sterling was stable at $1.3343.