LONDON: The dollar consolidated gains on Tuesday after three consecutive months of gains as investors waited for minutes of the U.S. Federal Reserve's June meeting and jobs data that should confirm whether policymakers will raise interest rates twice this year.

The euro also gained after Germany's coalition settled a row over migration that had threatened to topple Chancellor Angela Merkel's government.

"Notwithstanding the trade war concerns, the broader picture is the U.S. central bank still remains the most hawkish central bank among its peers and that should support the dollar for now," said Jane Foley, a senior currency strategist at Rabobank in London.

In early trading, the dollar was down 0.3 percent at 94.76. It has gained 5 percent over the last three months taking its year-to-date gains to nearly 3 percent.

The Fed will release minutes of its June meeting on Thursday, and investors will parse the data and the statements to gauge whether is still on track to raise interest rates twice more this year. Monthly payrolls data follow on Friday.

Broader appetite for risk in currency markets rose with the Australian dollar rising half a percent the day after its central bank left interest rates unchanged and signaled a steady outlook at a policy meeting.

The euro edged 0.1 percent higher at $1.1652.

The Chinese yuan remained volatile headed into July 6, when U.S. tariffs on Chinese exports are due to take effect.

The yuan earlier fell to 6.7204 per dollar, its weakest since August 2017, before recovering to 6.7035. Traders said state-owned banks were trying to prop up the currency .

"There's a strong element of 'risk off' generated by trade concerns behind the dollar's latest rise. That said, the dollar has managed to gain only as emerging market and commodity currencies have slid due to risk aversion," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.