The greenback advanced on Tuesday ahead the release of inflation figures while yen was on course to hit its biggest slump versus dollar as projections that BOJ abandoning its negative interest rate policy has diminished.

The dollar index that gauges the greenback versus its major pairs advanced by 0.05% to 102.84, having touched two month low at 102.33 the earlier week.

Despite predictions indicating a 0.3% monthly increase in core consumer prices for February, investors will be vigilant for unforeseen developments that could disrupt the anticipated pace of Federal Reserve rate cuts.

Analysts anticipate that lackluster figures will support the optimism expressed by Federal Reserve Chair Jerome Powell last week regarding disinflation, potentially leading to substantial downward volatility for the dollar.

The released jobs data on Friday indicated a softening trend in the underlying labor market conditions of the world's largest economy.