The euro traded at almost 3-year peak on increasing anticipations that the European Central Bank could could finish its bond purchase scheme.
The single currency rose slightly to $1.2261, not far from its Monday peak of $1.2296, its highest since December 2014.
The dollar index dropped 0.5 percent to 90.541 .DXY, after sliding as low as 90.279 on Monday, its trough since December 2014.
Versus the yen, the greenback bounced back, rising 0.4 percent to 110.97. It slumped as low as 110.32 yen in the previous session, which was its trough since Sept. 15.