• Sterling GBP= retreated 0.2 percent to $1.2809 after British Prime Minister Theresa May's lead over the opposition Labour Party dropped to 6 percentage points in the latest poll to show a tightening race since the Manchester bombing and a U-turn over social care plans.
The dollar declined 0.4 percent to 110.88 yen JPY=.
The dollar index .DXY, which tracks the greenback against a basket of trade-weighted peers, however, advanced 0.3 percent to 97.751.
• Concerns about situations involving Greece, Italy and the European Central Bank kept the euro under pressure on Tuesday.
• European geopolitical fears sapped risk appetite, weighing on Asian stocks and lifting safe havens including the yen and gold, though trading was thin with several markets closed for holidays.
The euro EUR=EBS slid 0.45 percent to $1.1114 in its fourth session of declines.
• "The bailout payments are necessary to meet existing debt repayments due in July, so if Greece were to forgo this bailout payment the probability of a default would spike, reopening the discussion around a Grexit from the Euro zone," Woods said.
However, he cautioned against reading "too much into it" without more details or confirmation, adding it was unlikely Greece would forgo the bailout payment at this stage.
• Euro zone finance ministers failed to agree with the International Monetary Fund on Greek debt relief or to release new loans to Athens last week, but did come close enough to aim to do both at their June meeting.
• Comments by former Italian Prime Minister Matteo Renzi on Sunday in favor of holding an election at the same time as Germany's in September also raised uncertainty and pulled the euro lower.
• So did a statement by European Central Bank President Mario Draghi reiterating the need for "substantial" stimulus given subdued inflation.
• British Prime Minister Theresa May's lead over the opposition Labour Party dropped to 6 percentage points in a poll published on Tuesday, the latest to show a tightening race since the Manchester bombing and a U-turn over social care plans.
Barely two weeks ago, a series of surveys showed May was on course for a landslide parliamentary majority in a June 8 snap election which she called to secure a strong mandate for Brexit talks.
But her Conservative Party remained on 43 percent according to a survey conducted by Survation for ITV's Good Morning Britain program, seeing their lead drop as support for Labour rose 3 percentage points to 37 percent.
• A strong start to the summer driving season in the United States supported U.S. crude prices on Tuesday, but persistent concerns about oversupply continued to fester.
U.S. West Texas Intermediate (WTI) crude futures CLc1 climbed above $50 per barrel early on Tuesday, before dipping back to $49.75 by 0615 GMT, down 5 cents, or 0.1 percent, from their last close.
U.S. demand for transport fuels tends to rise significantly as families visit friends and relatives or go on vacation during the summer months. The so-called summer driving season officially started on the Memorial Day holiday at the start of this week.
• "The start of the U.S. driving season ... boosted confidence in the market that stockpiles would start to fall," ANZ bank said.
Reference: CNBC,Reuters