Such a move however would hurt the euro, which has declined 3.4 percent against the dollar in the past three months and 1.1 percent against the yen.
Monday's disappointing regional economic data stoked speculation on the ECB adopting QE later this week.
Some, however, said the market might be expecting too much from Thursday's ECB meeting, even if further easing might be announced later down the line.
The euro hit a trough on trading platform EBS on Tuesday, its lowest since September 2013, before recovering to around $1.31 in early U.S. trading, little changed from Monday's close.
U.S. financial markets were closed on Monday for the Labor Day holiday.
The greenback also gained against other major currencies as U.S. yields rose and Wall Street stock prices opened higher.
Data supported the view the U.S. economy continues to expand at a modest pace. The Institute for Supply Management said its U.S. manufacturing activity index rose to 59.0 in August, the strongest since March 2011. July construction spending posted its highest level in over 5-1/2 years.
The dollar hit its highest since November against the Swiss franc, rising to 0.9200 franc after data showed the Swiss economy stalled in the second quarter.
The British pound sank on a poll that showed support growing for the "yes" vote in a referendum later this month that could see Scotland splitting from the rest of the UK.
The pound fell almost a cent to as low as just above $1.65, close to a five-month low.
One-month sterling/dollar implied volatility rose to 6.125 percent, its highest in five months.
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