The dollar slipped against its major rivals on Tuesday, following the release of an email chain by U.S. President Donald Trump's eldest son citing Russian support for his father before last year's U.S. election.

According to the email chain, a Russian prosecutor was offering his Trump Jr incriminating information about Democratic rival Hillary Clinton as part of Russian government support.

Forex investors are keen to hear U.S. Federal Reserve Chair Janet Yellen's semi-annual monetary policy testimony before Congress on Wednesday and inflation data from the US on Friday.

The greenback, which fell to a four-month high against the Japanese yen earlier in the session weighed by the recent rise in U.S. government bond yields, bounced back to close 0.15 percent to 113.86 yen. EUR/USD climbed to more than one-year high of 1.1475.

The Canadian dollar slid against its U.S. counterpart as forex traders awaited an interest rate hike decision by the Bank of Canada on Wednesday.

Pound sterling dropped to an eight-month trough against the single currency after the Bank of England Deputy Governor Ben Broadbent declined to back up recent hints from other policymakers at the central bank that suggested it may be moving toward raising interest rates.