The U.S. dollar turned positive against a basket of major rivals on Tuesday after touching its lowest level in more than 2½ years as traders brushed aside concerns surrounding a North Korean missile launch over Japan.
The dollar, which had touched its lowest level against the yen in 4½ months earlier on widespread risk aversion following North Korea's launch of a ballistic missile over northern Japan's Hokkaido island into the sea, jumped more than half a percent against the Japanese currency in afternoon U.S. trading to a 12-day high of 109.89 yen.
The euro was last down 0.10 percent against the greenback at $1.1965 after earlier hitting a more than 2½-year high and breaking through the critical $1.20 level to $1.2069.
"All that Korea news you can still classify in the known unknown' category," said Shahab Jalinoos, global head of FX strategy at Credit Suisse in New York. "None of it is anything the market has never seen before, so the market's capacity to bounce back from that was really high."