The dollar headed towards 2 1/2-month peak on Tuesday, underpinned by ongoing concerns over deepening Sino-U.S. trade dispute.
The dollar index inched up 0.2 percent to 96.806 .DXY, near 96.860, last week’s 2 1/2- month top.
The Japanese yen continued to slide versus the greenback, falling 0.4 percent to 112.855. The Bank of Japan is widely expected to keep its policy on hold at its Wednesday meeting.
The Australian dollar climbed half a percent to $0.7090.
The offshore yuan stayed at 6.9688, gaining 0.1 percent on the session. China’s currency recovered following surge in Asian stocks.