Euro lower on Ukrainian sanctions concerns. Meanwhile, the Australian dollar remained stable, hovering around a nine-month high fueled by rising commodity prices

The euro hovered near its lowest level in a week against the dollar on Tuesday, amid talk of new sanctions against Moscow following international outrage over the killings of civilians in Ukraine. Europe's single currency was little changed at $1.0975 after falling as low as $1.0960 in the previous session for the first time since March 28. It had hit a one-month high of $1.1185 a few days earlier amid heightened optimism that the conflict in Ukraine was over.

The euro's woes boosted the dollar index, which held near a one-week high of 99.083 hit overnight. It last stood at 98.949. The dollar weakened 0.20% to 122.515 yen, broadly tracking movements in long-term US Treasury yields, as it continues to consolidate around 122.5 after falling from a multi-year high of 125.105 on March 28.

The Australian dollar remained stable awaiting the country's central bank's decision on interest rates later in the day. Meanwhile, the Aussie was flat at $0.7541, remaining near Monday's high of $0.75565, a level not seen since July 6.