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The US dollar strengthened against other major currencies after Federal Reserve policymaker Charles Evans said inflation expectations have not gone up as much as he would have liked and he was comfortable with a December interest rate hike.
The Bank of Canada is also expected to tighten further after a deal to salvage the trilateral North American Free Trade Agreement reduced uncertainty for Canada's trade-dependent economy.
Still, China's hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new US-Mexico-Canada trade agreement that aims to forbid such deals with "non-market" countries, trade experts said on Tuesday.