Further ahead, market participants were eyeing interest rate decisions on Thursday from both the European Central Bank and the Bank of England, while the US Federal Open Market Committee (FOMC) makes a rate call next week.

The euro eased to 1.2747 dollars in early European trading, compared with 1.2766 dollars late in New York on Monday.

The dollar firmed to 114.72 yen from 114.66 yen late on Monday.

"Today sees the publication of a number of potentially market moving items which might fuel rate speculation ahead of the ECB meeting on Thursday and the FOMC meeting next week," said Commerzbank analyst Gavin Friend.

The US core personal consumption expenditures deflator and a manufacturing survey will be announced later Tuesday, followed by weekly jobless claims Thursday and the key US employment report for July on Friday.

Speculation is growing that the Fed might suspend its campaign of monetary tightening at the August 8 meeting of the US Fed, after lifting interest rates 17 consecutive times to 5.25 percent.