The Dollar remained near a two-week peak on Tuesday as investors prepared for a range of economic reports, including Friday's US payroll numbers, which could impact the anticipated scale of a Federal Reserve interest rate cut.

Meanwhile, the Yen ended a four-day decline against the greenback following reports that the Bank of Japan (BOJ) governor reaffirmed, in a document presented to a government panel, that the central bank would continue to raise interest rates if the economy and inflation align with current expectations.

Japan's Yen, which has surged by 10% over the past two months, partly due to official intervention, strengthened further, causing the Dollar to drop by 0.7% to 145.815.

“The governor of the Bank of Japan wrote a letter to the Japanese government, explaining the decision to raise rates in July. He also said that the BOJ will continue to raise interest rates ‘if the economy and prices perform as expected’,” said XTB research director, Kathleen Brooks.

“The Yen is higher on the back of these comments,” she added.

Elsewhere, the Euro edged down 0.13% to $1.1056, not far from the two-week low on Monday of $1.1042, while Sterling declined 0.17% to $1.3124, Reuters news agency reports.

This pushed the Dollar index, which tracks the US currency against six major rivals, into modestly positive territory at 101.68, still close to Monday's fortnight high of 101.79. 

The index had declined by 2.2% in August due to expectations of US interest rate cuts.

In India, the Rupee fell on Tuesday, following the trend of other weak Asian currencies. However, recent interventions by the central bank at these levels helped to keep the decline relatively limited.

The Rupee was trading at 83.9475 against the greenback at the time of writing, a decline from 83.9175 in the previous session. 

Meanwhile, other Asian currencies fell between 0.1% and 0.6%.

Over the past month, the Reserve Bank of India has frequently intervened around current levels to keep the Rupee from falling below 84.