Dollar falls in value amid Trump's visit to Asia

At the same time, the Japanese yen strengthened by more than 0.6% to 151.855 per dollar ahead of this week's Bank of Japan meeting, at which the central bank is expected to keep rates unchanged.

Comments by US Treasury Secretary Scott Bessent also led to a rise in the yen, as he called for prudent monetary policy during a meeting with his Japanese counterpart, Satsuki Katayama.

Investors also assessed Trump's meeting with Japan's new Prime Minister Sanae Takaichi in Tokyo, where he welcomed her pledge to accelerate military buildup and signed agreements on trade and rare earth metals.

Investors fear that any real deal between China and the US may bring much less cause for celebration.

The focus will be on Thursday's meeting between Trump and Chinese leader Xi Jinping in South Korea. According to analysts, if the two leaders manage to make concrete progress, it may be enough to satisfy the markets for now, as investors are looking for positive developments.

Expectations surrounding the outcome of trade talks and an expected 25 basis point rate cut by the Federal Reserve have put the dollar at a disadvantage.

On Tuesday, the euro reached a weekly high of $1.1668, while the pound sterling traded at $1.3368, up 0.25% on the day.