The greenback traded lower against most major currencies due to returned risk appetite after Greece's debt management agency said it sold new debt in the open market successfully, which gave support to euro.

The single currency was up for the second consecutive day on Monday as Greece sold 5 billion euros ($6.7 billion) of bonds in the first sale since European leaders agreed last week on a plan to support the nation as it worked to cut a deficit. Euro opened higher at 1.3530 but retreated immediately but the pair found support at the intra-day low of 1.3419 in Asian morning and rebounded briefly to 1.3506 in European morning in tandem with strength in cable. On other news, Eurozone economic sentiment rose to 97.7 in March versus the expectation of 97.2 from the reading of 95.9 in February whilst sentiment in industry improved to -10 from -13 versus the expectation of -11, Eurozone consumer sentiment stayed flat at -17 as expected. However, traders took profits on the positive news from Greece after its well-received bond auction and price retreated to 1.3436 in NY afternoon before stabilizing.

The cable extended Friday's gain to 1.4975 in Australia on Monday but price retreated from there in tandem with euro. Buying interest later emerged at the intra-day low of 1.4893 in Asian morning and price rallied to 1.5019 in European morning after U.K. finance spokesman George Osborne said Britain opposition Conservatives have identified ways to cut total government spending by 12 billion pounds (US$ 17.9 billion), as U.K conservatives said Britain would raise tax thresholds for many to offset planned payroll tax rise. However, sterling retreated to 1.4956 on news that Standard & Poor's Rating Services has kept negative outlook on U.K. Triple-A rating concerning the government has not been specific enough about how it will cut the budget deficit.

The Australian dollar found support on broad-based strength in commodity currencies, expectations of better retail sales this week and talk of another interest rate hike. RBA's Stevens said on Monday that house prices are “getting quite high”. This signaled to traders that interest rates may need to be increased further and encouraged traders to buy the aussie. The pair traded with at firm undertone throughout the day and rallied to an intra-day high at 0.9180 in NY afternoon before stabilizing.

Economic data to be released on Tuesday include: Japan household spending, unemployment rate, industrial production, Germany Import price index, U.K. Nationwide house price, GDP, Canada PPI and U.S. consumer confidence.