The dollar pulled off the previous session's three-week low against the euro taking heart from an upbeat US manufacturing report, while the yen steadied after Tokyo stocks recovered from three-month lows, dealers added.

The dollar touched its high at Tk 58.4450 per unit in inter-bank trade compared to its previous high at Tk 58.4550 on Monday and traded between 58.4400 in most deals, dealers of different commercial banks said.

The dollar stood at $1.1785 per euro in inter-bank trade after a low near $1.1850 on Monday while the yen held steady at 108.86 per dollar, a yen below last month's three-year peak, and was slightly lower on the day at 128.28 per euro, dealers said.

The dollar lost grounds against local currency as most commercial banks experienced higher inflow of remittances.

Bangladeshi people living abroad are now sending dollar to their relatives on the occasion of holy Eid festival, dealers said. Most banks took special drives to attract remittance ahead of Eid festival at the end of this month. Normally, expatriate Bangladeshi people send more foreign exchange mostly in dollar this time to their relatives.

"We have experienced higher volume of remittance inflow, which is enough to meet our importers' demand and eased pressure on our foreign exchange funds", a dealer of a private commercial bank said.

On Monday the Federal Reserve Bank of New York's Empire State Manufacturing Survey showed its index of business conditions leapt to a record high in November. But the dollar's advance was limited as Wall Street fell for the third straight session on security concerns, dealers on online trading said.

Meanwhile, Tokyo stocks managed to rebound as investors bought back bank shares, which were hit hard in the previous session, leaving major currencies to move in a tight range.