U.S. President Trump boosted hopes for a large fiscal stimulus package while greenback hits its lowest since September in response to the comments.
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Markets are governed by concern after a brutal US tech stocks selloff the previous day and a leading coronavirus vaccine candidate faced delay.
The dollar registered a fourth straight monthly drop setting for the worst August in five years and the longest run of monthly losses since the summer of 2017.
The dollar gained for a second consecutive day as fading hopes over the latest China-U.S. trade truce prompted traders to buy the greenback after a selloff last week.
Japanese Yen recovers on Tueasday as dollar faces expectations for an accommodative Fed and hit by concern over the U.S. economy.