The dollar rebounded off its lowest level in more than a week, as trades began to turn their focus to the Federal Reserve meeting at Jackson Hole, Wyoming later this week, which will be attended by Fed Chair Janet Yellen, European Central Bank president, Mario Draghi, and other global central bankers.

The dollar index, which measures the greenback's value against a basket of six major currencies, edged up around 0.5% to 93.41, moving away from Monday’s low of 92.92.

Against the yen, the dollar tacked on 0.3% to 109.30, pulling away from last week's low near 108.60, which was the greenback's weakest level in about four months.

Global stock markets broke a 3-day losing streak, as appetite for riskier assets improved amid signs of a global economic recovery and rising commodity prices.

Stock markets across Asia ended mostly in positive territory, with benchmarks in Shanghai, Seoul and Sydney rising amid thin trading volumes.

In Europe, shares were higher in mid-morning trade, with almost all major bourses across the region in the green.

Meanwhile, U.S. stock futures pointed to a stronger open on Wall Street, with the major benchmarks up between 0.2%-and-0.4%.

Industrial metals extended this week's monster rally to hit fresh multi-year highs on expectation China's reform of its metals industry will curb supply against a backdrop of robust demand.

Zinc prices in London surged to their highest since October 2007, while copper rallied to its highest peak since November 2014.

Nickel and aluminum, both used in stainless steel, also crept higher to log fresh highs for the year.

Meanwhile, Oil prices bounced back from the prior session's more than 2% drop as 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. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of around 3.4 million barrels, which would mark an eighth weekly decline in a row.

The mood among German investors worsened for the third consecutive month in August, a survey showed, suggesting that markets expect Europe's biggest economy to lose some momentum in the coming months.

The ZEW research institute said its monthly survey showed its economic sentiment index fell to 10.0, the weakest reading since October. Economists had forecast a reading of 15.0, down from 17.5 points in the previous month.

The euro was down around 0.5% against the dollar to 1.1757, moving further away from a 2-1/2 year high near 1.1910 hit in early August.