The euro edged up on Tuesday, regaining some poise after political turmoil in France sent traders scrambling for hedging protection against further price swings, while the yuan hit a 13-month low on tariff risks and weakness in China's economy.

The yen, which has gained nearly 4.5% in the last two weeks, retreated slightly against the dollar, but remained near six-week highs, as traders are growing increasingly confident that Japan may hike rates this month.

The euro, which had been the weakest G10 currency through November, began this month with a 0.7% fall on Monday and was last hovering at $1.0487, as France's government heads for collapse over a budget impasse.

The Australian dollar rose 0.4% to $0.6503, reversing some of the previous session's 0.7% fall. Economic data was mixed, with a bigger-than-forecast current account deficit countered by a jump in government spending that is likely to boost growth.

The yen, the only G10 currency to gain on the dollar last month, touched its strongest since late October on Monday at 149.09 to the dollar and was last at 149.89, leaving the dollar up 0.2% on the day.

Markets are pricing in a near-60% chance of a 25 basis point rate hike in Japan this month.

The overriding question for investors is what Friday's U.S. employment data will show and how likely it makes another rate cut from the Federal Reserve this month. Right now, there is a roughly 70% chance of a cut.

Job openings figures are due later on Tuesday.

Source: Reuters