Dollar falls after Trump criticizes Fed

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The dollar's advance - it has gained 8 percent since January - would not be reversed, however, unless the Fed decided "that there has been an unwarranted tightening of financial conditions and want to slow the pace of rate hikes," Turner said.

The Fed has raised interest rates twice this year and is expected to do so again next month.

Traders are preparing for the release of Federal Reserve policy meeting minutes on Wednesday and an annual Jackson Hole symposium for insights into the direction of U.S. monetary policy.

Against the U.S. currency, the euro strengthened 0.3 percent to a daily high of $1.154.

Concerns that a currency crisis in Turkey would hurt euro zone banks and uncertainty about the Italian government's planned budget have weighed on the euro recently.

Trump's remarks appeared to bolster appetite among investors for the Japanese yen as a safe haven of choice.

The yen was basically flat at 110.08 yen, paring gains after touching as high as 109.775 yen earlier.

The dollar on Tuesday fell below the psychologically-significant 110-yen level for the first time since June 28.

The Australian dollar was 0.13 percent higher at $0.7350, after Prime Minster Malcolm Turnbull survived a leadership vote by a narrow margin.