"Hedge funds are already selling yen this week, and positive comments from Yellen could give them an excuse to sell even more", said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.
Korea's Kospi edged up 0.1% to another record close, while Japan's Nikkei added 0.4% following an earlier decline in the yen against the dollar. Eastern, while Minneapolis Fed President Neel Kashkari, also a voter, will appear at a town hall discussion in MI at 5:30 p.m. "The main reason behind the weakness of the dollar, which has lost its upward momentum since the Fed rate hike, is United States yields stuck at low altitude", said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
A packed roster of top central bank officials speaking at various events kept volumes light and investors cautious.
The euro moved upward to its highest point in more than a week versus the US dollar Tuesday after Mario Draghi the President of the European Central Bank said factors that were weighing on inflation across the common currency zone were for the most part temporary and that the Bank could look beyond them. It earlier had traded at $1.118.
Spot gold XAU= was up 0.6 percent to $1251.21 per ounce. Alphabet shares fell 1.1 percent.
Mario Draghi, president of the European Central Bank, is scheduled to speak at the ECB forum in Sintra, Portugal, later in the day. The shared currency gained almost 1.4 percent against the greenback in late trading.
"Unless an unexpected shock materialises, a formal tapering announcement is likely to come at the European Central Bank monetary policy meeting scheduled on 7 September", he added.
Asian stocks were mostly higher in range-bound trade on Tuesday after Wall Street closed mixed, while Asian tech shares mirrored losses in US peers overnight. The U.S. dollar index fell 1 percent, after a vote on healthcare legislation was delayed in the U.S. Senate.
UK's benchmark FTSE 100 closed down 0.19 percent, the pan-European FTSEurofirst 300 ended the day down by 0.70 percent, Germany's Dax ended down 0.79 percent, France's CAC finished the day down by 0.72 percent. Australia's S&P/ASX 200 slipped 0.1 percent to 5,714.20. Financial stocks jumped with government bond yields, while technology stocks - one of the leaders in the stock market this year - were among the worst-performing sectors in the broad index. As a result, the Governing Council may come under pressure to remove the quantitative easing (QE) program, and speculation for a less accomodative policy stance may prop up the Euro throughout the remain of the year especially as President Draghi and Co. now forecast the euro-area to grow an annualized 1.9% in 2017. The Canadian dollar was last trading at C$1.3153 to the greenback, up 1.3 percent.