The dollar edged higher against its rivals on Tuesday but was still below its highs reached in December and January after two weeks in which expectations for a rise in U.S. interest rates this month have soared.
Some participants said the currency is waiting ahead of Friday's U.S. non-farm payrolls report.
Overnight remarks by Peter Navarro, President Donald Trump's trade adviser, that the $65 billion U.S. trade deficit with Germany was "one of the most difficult" trade issues focused attention on concerns over the White House's attitude toward trade and the dollar ahead of Group of 20 meetings later this month.
Despite the comments, the greenback rose 0.16 percent against a basket of six major currency rivals, buoyed by falls in major European currencies.
GBP/USD fell to a seven-week low 1.2168 after weak consumer spending data added to worries Britain's economy is slowing as it prepares to trigger its exit from the European Union.
The Swiss franc also fell to multi-week lows, with the U.S. dollar rising to its highest against the franc since Jan. 11 and the euro hitting its highest against the franc since Jan. 25. USD/CHF traded as high as 1.0169 while EUR/CHF touched 1.0747,
Analysts said news of a rise in the Swiss National Bank's foreign exchange reserves and statements from SNB Chairman Thomas Jordan that the franc was "significantly over valued" weighed on the currency.