The dollar struggled to recover ground against other major currencies on Tuesday as lingering U.S. political risk and strong European data kept the greenback in check.
The dollar index, which tracks the greenback against a basket of six major rivals, was nearly flat on the day at 96.972. The index fell to a more than six month low on Monday, following its worst week of losses in a year.
"The noise around the political situation in the U.S. is keeping a lid on the dollar," said Brad Bechtel, managing director FX at Jefferies in New York.
Worries over U.S. President Donald Trump's recent firing of FBI Director James Comey, who was overseeing a probe into possible links between the president's team and Russia, and concerns about possible delays in Trump's efforts to implement his economic stimulus plans have recently pressured the dollar.