The US dollar inched down against a basket of six major currencies, slipping to a low of 92.461 at one point on Tuesday, its lowest level since January 2015.
The USD/JPY fell 0.02% to trade at to 106.21, its lowest level since October 2014. The greenback last stood at 105.85 against the yen, down 0.5% on the day. The yen's rise occurred in thin trading conditions with Japanese markets closed from Tuesday to Thursday for public holidays.
The yen added to its recent gains as the Australian dollar slid after the Reserve Bank of Australia (RBA) cut interest rates by 25 basis points to 1.75%, with the market participants divided on whether the RBA would ease policy on Tuesday.
The Australian dollar tumbled 1.8% against the yen with AUD/JPY to trade at 80.02 and 1.4% against the greenback, with AUD/USD to trade 0.7556 .
The euro, another low-yielding currency, rose 0.4% against the dollar with EUR/USD to trade at 1.1580, its highest since August.
Meanwhile, the dollar remained lower against the pound and the Swiss franc, with GBP/USD up 0.59% at 1.4761 and with USD/CHF sliding 0.98% to 0.9451.
Elsewhere, USD/CAD was little changed at 1.2480, near Friday’s nine-month lows of 1.2495.
The greenback has been on the defensive following the Federal Reserve’s announcement on Wednesday to leave interest rates unchanged, while indicating that any further rate rises would be data dependent. The dollar index has fallen about 6.2% so far this year.