The International Monetary Fund's bleak outlook for 2012 and 2013 growth weighed on equities markets in the US, Europe and Asia, and the dampened sentiment sent investors in search of safe havens, including the world's reserve currency.
"With no major US data out this week and momentum behind the greenback following September's surprisingly strong labor market reading, further gains are subject to global investor sentiment, which looks increasingly drab," said Christopher Vecchio, currency analyst at DailyFX.
The euro was traded at $1.2881 around 2100 GMT, down from $1.2968 at the same time Monday.
The yen continued to push higher. The dollar slipped to 78.23 yen from 78.29 yen late Monday, while the euro fetched 100.77 yen, down from 101.52 yen.
"The market is range trading with little changing in its drivers," said Sebastien Galy at Societe Generale.
The dollar rose against the Swiss currency, to 0.9405 francs from 0.9331 late Monday.
The greenback gained against the British pound, which fetched $1.5997 compared with $1.6024 the prior day.
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