The dollar initially recovered some losses against the euro on Tuesday, after Treasury Department data showed a net inflow into U.S. assets in December that was sufficient to offset the U.S. monthly trade deficit.
That wide trade gap has been a persistent weight on the U.S. currency. The U.S. trade deficit in December was $56.4 billion.
U.S. December net capital inflows were $61.3 billion, the Treasury Department said.
Foreign exchange analysts had expected a net inflow of roughly $60 billion.
The euro initially slipped to around $1.3025 according to data from around $1.3035 shortly before the report, but still up about 0.5 percent from levels late on Monday in New York.