The euro struck a one-year low of $1.0596 on Tuesday, weakened by the prospect of new US import tariffs imposed by incoming president Donald Trump.

A key gauge of the dollar's strength hit its highest level in four months on Monday as many of the greenback's rivals weakened. The ICE U.S. Dollar Index, a popular gauge of the buck's value against a basket of rivals,

The euro rises slightly against the dollar after U.S. inflation data met analysts’ expectations. Inflation rose to 2.6% year-on-year in October from 2.4% in September, as expected by analysts in a WSJ survey.

The euro dropped to its lowest level in nearly seven months against the U.S. dollar on Monday, weighed down by investor worries about possible tariffs by a new White House administration which could hurt the euro area's economy.