Against the yen, the dollar shed about 0.2 percent to 111.13 JPY=, after retracing the overnight low of 111.10.
The euro was steady at $1.1390 EUR=, within sight of Thursday's 5-1/2 month peak of $1.1438.
Futures markets are wrong, and the Federal Reserve likely should hike rates sooner than they imply, Boston Federal Reserve President Eric Rosengren said Monday.
In prepared remarks for a speech in Boston, Rosengren — a Federal Open Market Committee voter and historically one of its dovish members — also said markets are too slow in pricing in rate hikes, and that their path of hikes is too low.
Minneapolis Fed President Neel Kashkari said on Monday he is "comfortable" with the current stance of U.S. monetary policy, and expects "moderate" economic growth ahead.
New orders for U.S. factory goods fell in February and business spending on capital goods was much weaker than initially thought, the latest indications that economic growth slowed further in the first quarter.
The Commerce Department said on Monday new orders for manufactured goods declined 1.7 percent as demand fell broadly, reversing January's downwardly revised 1.2 percent increase. Orders have declined in 14 of the last 19 months. They were previously reported to have increased 1.6 percent in January.
Crude oil prices fell in early Asian trading on Tuesday on signs of weakening gasoline demand, long a pillar of support for struggling fuel markets, in both North America and Asia.
Front month U.S. West Texas Intermediate (WTI) crude futures were trading at $35.39 per barrel at 0015 GMT (08:15 a.m. EDT), down 30 cents from their last settlement.
International Brent futures were down 23 cents at $37.46 a barrel.
The declines extended falls from the previous two sessions as investors doubted that producers will be able to rein in global overproduction that has seen crude prices tumble by as much as 70 percent since mid-2014.
Reference: CNBC, Reuters
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