The dollar languished on Tuesday after being pushed back to its highest level in two decades compared to its main counterparts by a reinvigorated euro that rose elated; by ECB bets.

The dollar slipped 0.17% to 138,505 yen, after hitting 139 overnight for the first time since mid-July. The dollar index stood at 108.65 at the start of the Asian day, after falling by 109.48 overnight, a level that had not been reached since September 2002.

The euro rose slightly by 0.08% to $1,00045, extending Monday's rally by 0.32% after failing to keep its lead above parity over the past week. The euro was also helped by a fall in gas prices in Europe after German economy minister Robert Habbeck said the country was filling gas storage facilities faster than expected.

The pound rose 0.1% to $1.17175, recovering from a low of almost 2.5 years at $1.16495 reached on Monday. The Aussie rose slightly by 0.04% to $0.69125, rebounding by $0.6481 in the previous session, a six-week low.