The dollar climbed against its major rivals on Tuesday as U.S. Treasury yields inched higher ahead of tomorrow’s FOMC meeting in which the Federal Reserve is expected to raise interest rates.

The euro slipped away from one-month highs as dovish-sounding comments from European Central Bank officials dampened its recent surge.

With a rate hike already priced in, forex investor focus is centered on what kind of a message Fed policymakers will deliver after its two-day meeting starting later on Tuesday.

The dollar index was up a quarter percent to 101.60, adding to modest gains made the previous day.

USD/JPY rose back above 115, touching 115.19 by the time of writing, having gone to 115.510 on Friday, its highest since Jan. 19.

EUR/USD dipped to 1.0631 early on Tuesday. The common currency had climbed to a one-month high of 1.0714 on Monday, lifted by rumours that some members of the ECB's Governing Council discussed the possibility of higher interest rates at last week's policy meeting.

Its rise however was cooled off later on Monday after ECB Governing Council member Jan Smets reportedly said last week's policy meeting was not a signal of coming policy change. Bank of France Governor Francois Villeroy de Galhau also said rising inflation in the euro zone was highly exaggerated.

GBP/USD fell to 1.2106, with its overnight rise halting after UK parliament backed the ‘Brexit Bill’ giving British Prime Minister Theresa May the green light to begin the EU exit negotiations. May has now cleared the final hurdle standing between her and the start of the divorce talks.

Cable was up 0.4 percent overnight after Scotland's First Minister Nicola Sturgeon demanded a fresh Scottish independence referendum but said it should take place at the earliest in late 2018.