The US dollar hit a two-week high against the euro, as investors prepared for a week of important data, including the US jobs report due on Friday.
At 18:40 ET (22:40 GMT), the pound was little changed at 1.1046, down 0.1% at 145.31.
This jobs report is expected to have a major impact on the Federal Reserve’s decision, scheduled for September 18.
The payrolls data follows comments from Federal Reserve Chairman Jerome Powell last month that signaled the beginning of interest rate cuts due to concerns about a weak labor market.
The odds of a Fed rate cut are a focal point for investors. According to CNBC, there is a 63% chance of a 25 basis point rate cut, and a 37% chance of a 50 basis point cut.
Overall, the market has priced in a total of 100 basis points in cuts for the full year.
The euro fell 0.24% against the US dollar on Tuesday to $1.1043. The euro had earlier hit a two-week low of $1.1033 during the trading session.
Amid a broader sell-off in stocks and riskier currencies on Tuesday, the dollar, traditionally seen as a safe-haven asset, also appeared to gain as investors fled to safety.