The dollar initially dropped on Tuesday and then swiftly rebounded after a report showed the U.S. trade deficit widened to a record in February.
By morning in New York, the euro initially shot up to around $1.3016 according to Reuters data from around $1.2986 shortly before the report. It then fell to a session low of $1.2949.
Against the yen the dollar slipped to a session low of 107.53 yen from around 107.70 yen shortly before the data. The dollar then recovered to a session high of 107.94 yen.
The government said the shortfall between imports and exports expanded to $61.04 billion in February compared with a revised deficit of $58.50 billion in January. Analysts had expected a deficit of $59 billion in February.