Tuesday saw a slight decrease in the value of the greenback as traders exercised caution before the two consecutive day Federal Reserve policy meeting. In contrast, the Chinese yuan appreciated as Beijing promised to increase policy support.

The Federal Reserve will have little room to raise interest rates further following Wednesday's widely anticipated increase, according to the idea supported by Monday's disappointing U.S. business activity data. As a result, the dollar has marginally declined.

The majority of economists surveyed by Reuters believe that the rise on Wednesday will be the final one for the central bank's current tightening cycle.

The dollar index that gauges the greenback versus its major pairs dipped 0.1% at 100.985.

EUR/USD ticked up by 0.2% to 1.1083, recovering from the lowest level in 2 weeks of 1.1059 earlier in the session after the release on Monday of disappointing July economic activity data for the eurozone.

GBP/USD advanced by 0.2% to 1.2858.

USD/JPY climbed by 0.1% to 141.54, before the BOJ’s meeting during the week.