The dollar slipped again on Tuesday after declining for a week, weighed down by the Federal Reserve's caution over the economy while traders considered news that upcoming U.S.-Japan talks could include discussions on FX and avoiding volatility.

Treasury yields fall and the dollar is little changed as Monday's "Sell America" trade recedes a bit. Concerns about the U.S. government debt flared up after the Moody's downgrade and the progress of a tax bill in Congress that looks poised to widen the already worrisome budget hole.

The U.S. dollar dipped to a one-week low versus the safe-haven yen on Monday as markets digested a surprise downgrade of the U.S. government's credit rating and as trade friction concerns weighed on sentiment.