The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, weakened for a 5th straight day, falling around 0.4% to 98.44 in New York morning trade.

It fell to an overnight low of 98.37, a level not seen since November 10, after reports that President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation in a meeting last week.

The news added to concerns that Trump will be unable to successfully push through his economic stimulus program in the face of mounting controversies.

The greenback was already on the defensive as signs of slowing economic activity in the U.S. prompted investors to temper expectations for more rate hikes by the Federal Reserve. Markets are pricing in around a 67% chance of a hike at the Fed's June meeting.

There are a few economic reports Tuesday, including U.S. data on housing starts and building permits at 12:30 GMT, followed by industrial production figures at 13:15 GMT.

The euro zone's economy grew in line with preliminary estimates in the first three months of the year, underlining optimism over the health of the region's economy, data showed on Tuesday.

Eurostat said gross domestic product (GDP) expanded by 0.5% in the first quarter, unchanged from an initial estimate and meeting expectations. Year-over-year, the economy expanded 1.7% in the three months ended March 31.

A separate report showed that German economic sentiment improved in May, but at a lower rate than expected.

The Euro jumped to a 6-month peak of 1.1050 against the USD. (EUR/USD).

Oil futures were up on Tuesday, with prices headed closer to daily highs reached in the prior session, as news that Saudi Arabia and Russia agreed to extend oil output cuts for a further nine months until March 2018 continued to boost sentiment.

Investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products. Industry group the American Petroleum Institute is due to release its weekly report at 20:30 GMT later on Tuesday.

U.S. crude was at $49.16 a barrel, up 31 cents, or around 0.6%. The U.S. benchmark ended Monday's session with gains of $1.01, or 2.1%, after hitting its highest since April 28 at $49.66.

Brent gained 30 cents to $52.12. The global benchmark touched its strongest level since April 21 at $52.63 in the prior session.

British inflation rose to its highest level since September 2013 last month, according to official data on Tuesday that underlined a growing squeeze on households ahead of the June 8 national election.

Consumer prices increased in April by 2.7% compared with a year earlier, the Office for National Statistics said, slightly above economists' expectation for a 2.6% annual rise and accelerating from an increase of 2.3% in the preceding month.

Excluding oil prices and other volatile components such as food, core consumer price inflation rose to 2.4%, the strongest rate since March 2013.

The GBP pulled back from the day’s highs against the USD, down about 0.1%.

Meanwhile, the FTSE 100 rose to a fresh all-time peak.