The dollar dropped to a six-week low against a basket of currencies on Tuesday, pressured by expectations the Federal Reserve would delay raising interest rates after recent soft U.S. economic data.
The U.S. currency also slid to a three-week trough against the yen, as the Japanese government approved a largely expected set of stimulus measures. The dollar fell to its lowest in six weeks against the euro.
The greenback extended losses after U.S. data showed little inflation. A key inflation measure - the core personal consumption expenditure index - grew by a modest 0.1 percent in June, which kept the annual inflation rate unchanged at 0.9 percent.