In late New York trading on Tuesday, the euro fell to $1.1137 from $1.1190 of the previous session, and the British pound decreased to $1.3078 from $1.3114, Xinhua news agency reported.
The Australian dollar declined to $0.7505 from $0.7578.
The dollar bought 103.10 Japanese yen, higher than 101.94 yen in the previous session. The dollar increased to 0.9840 Swiss francs from 0.9777 Swiss francs, and it inched up to 1.3088 Canadian dollars from 1.3013 Canadian dollars.
Fed Vice Chairman Stanley Fischer said early on Tuesday that the US job market is close to full strength and it is impossible to say whether the next interest rate hike would be "one and done," according to media reports.
Fischer's comments were in accordance with remarks he and Fed Chair Janet Yellen made on Friday at a conference in Jackson Hole, Wyoming, indicating that the time to lift rates again was nearing.
"In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months," Yellen said.
Analysts said it's possible for the Fed to hike interest rates as soon as September. But about 71 per cent of 62 economists surveyed by the Wall Street Journal this month believed the Fed will wait until December to raise rates.
The dollar index, which measures the greenback against six major currencies, was up 0.56 per cent at 95.116 in late trading, the highest level in three weeks.
