The euro was underpinned by signs of political stability in Italy and the dollar extended its surge versus the yen after a solid U.S. employment figures triggered bets of three more U.S. rate increases by the end of year.
The euro was firm at $1.1687, having climbed to $1.1745 on Monday, its top since May 24.
Since touching a 10-month trough of $1.1510 last week, the single currency has been rebounding as traders calmed down after the formation of a new government in Italy.
The dollar index ticked up 0.1 percent to 94.111 .DXY after losing 0.2 percent overnight.
The greenback inched up 0.1 percent to 109.95 yen, extending its recovery from a five-week nadir of 108.115 yen.
The Australian dollar skidded 0.2 percent to $0.7633.