The dollar dipped 0.2 percent overnight after data showed US retail sales rose slower-than-expected at 0.1 percent in September.

"There is not going be very clear dollar direction until we see a more noticeable rise in treasury yields or somewhat stronger US data coming through to support the rise in the dollar," said Chang Wei Liang, an FX strategist at Mizuho Bank.

Emerging market currencies have taken a hit recently amid worsening diplomatic tensions between the United States and Saudi Arabia following the disappearance of a Saudi reporter in Turkey.

The disappearance earlier this month of the journalist, who was critical of Riyadh, has provoked an international outcry against the oil-rich kingdom, which has rattled its financial markets and currency.

In Asia, the South Korean won was the biggest gainer after it agreed to begin reconnecting rail and road links with its neighbour in the north, boosting sentiment over stability in the region.

The export-reliant economy often sees currency moves linked to its equity market. South Korean equities rose as much as 0.8 percent on Tuesday.

The Thai baht resumed trade on a strong footing after a pubic holiday in Thailand, rising as much as 0.37 percent to the dollar.

The Philippine peso was largely flat at 54.07 to the dollar. The government cut gross domestic product growth target for the year to 6.5-6.9 percent from 7-8 percent previously.

The Philippine government also expects the peso/dollar rate to average 52.50-53.00 in 2018.

The Chinese yuan softened 0.09 percent against the dollar after China's factory-gate inflation cooled for a third straight month in September.

Strong global crude prices hurt the Indonesian rupiah , which weakened 0.07 percent.

Saudi crude supply concerns pushed oil prices higher, adding to negative sentiment ahead of US sanctions against Iran's oil exports.

The archipelago reported a steep fall in exports growth for the month of September, its second straight month of decline. Central bank governor Perry Warjiyo said weak export growth in September was due to soft Chinese demand.

Investors are eyeing the country's imports as the economy struggles to maintain a current account surplus.

CHINESE YUAN

The yuan has fallen over 6 percent this year, a source of diplomatic concern for the world's second biggest economy as it remains locked in an intensifying trade war with the United States.

China's third-quarter growth will likely slow to its weakest pace since the global financial crisis, a Reuters poll predicted.

"Yuan is pretty much dependent on how the US economy evolves, in terms of whether or not they bring about a stronger rates profile as well as how the actual impact of the trade war will be on the export oriented sector in China," Mizuho's Chang added.

The following table shows rates for Asian currencies against the dollar at 0516 GMT.