In late New York trading on Tuesday, the euro increased to $1.1807 from $1.1749 in the previous session, and the British pound increased to $1.3204 from $1.3153 in the previous session, Xinhua news agency reported.
The Australian dollar increased to $0.7783 from $0.7760.
The dollar bought 112.31 Japanese yen, lower than 112.66 yen of the previous session. The US dollar lost to 0.9751 Swiss franc from 0.9799 Swiss franc, and it was down to 1.2510 Canadian dollars from 1.2539 Canadian dollars
The euro rose to session highs against the dollar on Tuesday, as Sabine Lautenschlaeger, vice-chair of the supervisory board of ECB, called for the central bank to roll back asset purchases in 2018.
Meanwhile, there has been speculation that the tax overhaul plan President Donald Trump raised would stall, weighing down the greenback.
The dollar index, which measures the greenback against six major peers, was down 0.45 per cent at 93.253 in late trading.
Trump and the top Republicans in Congress hope to enact a package of tax cuts for corporations, small businesses and individuals before January, saying lower taxes will boost economic growth, jobs and wages.
However, media reported a spat between Trump and an influential Republican senator raised worries.