The dollar edged lower Tuesday ahead of U.S. President Donald Trump’s address to Congress.
The dollar index was off 0.06% at 101.08 at 02:30 ET.
The dollar had earlier advanced after Fed member Robert Kaplan said the FOMC should raise rates sooner rather than later.
The odds of a March Fed hike increased to 33%.
The market is waiting for further details on the Trump administration’s plans for tax reform and infrastructure spending.
Trump on Monday pledged to increase military spending and reduce expenditures in other areas.
The euro edged higher to just below $1.06 as far-right candidate Marine Le Pen lost ground in the run-up to the French presidential election.
The dollar eased 0.24% to 112.43 yen. Japanese industrial output unexpectedly fell in January.
Elsewhere the pound remained under pressure as a possible renewed push for a Scottish independence vote loomed.