On Tuesday the greenback trimmed gains against its major rivals, but remained supported as it continued to recover
from the previous week's disappointing U.S. data.
EUR/USD was down 0.25% at 1.0713, off session lows of 1.0661.
The euro remained vulnerable after the ZEW Centre for Economic Research said that its index of German economic sentiment declined by 1.5 points to 53.3 this month from March’s reading of 54.8 while analysts had expected the index to improve by 0.5 points to 55.3 in April.
However, the index of euro zone economic sentiment increased to a 14-month high of 64.8 in April from 62.4 in March, above forecasts for a gain to 63.7.
Concerns
that Athens is far from reaching an agreement on economic reforms
for bailout funds with its creditors fueled fears that Greece could
be forced out of the euro zone and also weighed on the currency.
The pound was steady, with GBP/USD at 1.4903, after falling to 1.4856 earlier in the session.
The dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.14% to 119.35 and with USD/CHF gaining 0.13% to 0.9575.
The commodity-linked Australian and New Zealand dollars were higher, with AUD/USD rising 0.30% to 0.7747 and NZD/USD gaining 0.63% to 0.7710.
Earlier, the Reserve Bank of Australia said in the minutes of its April meeting that "it was appropriate to hold interest rates steady for the time being" but added that "further easing of policy may be appropriate over the period ahead" to bolster growth.
