The dollar drifted lower on Tuesday as worries over Greece's fiscal problems eased slightly.
The euro inched up above $1.44 at one point after Greece on Monday received the euro zone's backing to tackle its debt troubles. It was last quoted 0.1% higher at $1.4394.
Greece's ballooning budget deficit and debt of more than 120% of GDP had triggered downgrades by debt rating agencies and hurt the euro in the past few months.
The euro did not fare as well versus other majors. It fell to a four-month low of 87.67 pence, down 0.5% on the day.
The sterling rose to a six-week high of $1.6422, as the currency drew strength from firmer UK housing data and comments from finance minister Alistair Darling showing his commitment to reducing the country's record budget deficit.
Talk of M&A related inflows also propped up the pound, as Cadbury is reportedly close to accepting a $19 billion deal from U.S.-based Kraft Foods.
The dollar index was down slightly at 77.001.
The greenback edged down 0.3% to 90.40 yen, within shot of its four-week low of 90.55.
Speculation that there may be dollar-selling linked to Japan Airlines' likely bankruptcy filing lent support to the yen.
Signs that China is stepping up quantitative tightening weighed on growth-linked currencies like the Australian dollar.
The Aussie fell 0.8% at 83.4 yen and eased 0.3% to US$0.923, after gaining earlier on the back of firmer gold, metal and oil prices.
Crude futures traded to the upside around $78.6 a barrel, as Chinese data out later in the week is expected to signal strong demand growth from the world's second largest oil consumer.
Spot platinum hit a 17-month high and palladium an 18-month high, supported by an improving outlook for the global economy and the launch of new U.S-based exchange traded funds backed by the metals.
Gold edged 0.3% higher to trade around $1,136 an ounce.
