The dollar dropped to a fresh 2-month low against a basket of major currencies on Tuesday amid expectations that central bankers outside the U.S. will tighten monetary policy in response to rising prices.

The European Central Bank suspended its emergency purchases of euro zone government bondslast week, having already expressed concerns about the pace of inflation, which reached 2.4 percent in January.

With China and India also among the nations expected to raise rates, the Federal Reserve's determination to keep accommodative measures in place is likely to buck the global trend.

As the interest rate gap between the U.S. and the rest of the world widens, the dollar may weakenover the course of the year.

Tuesday morning, the dollar slipped to $1.3774, its lowest since November 21. The buck has dropped almost nine cents in the past three weeks.

Versus the sterling, the dollar slipped to a two and a half month low of $1.6150, accelerating losses after the release of data showing that U.K. manufacturing rose at a record pace in January.

The seasonally adjusted Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index for the manufacturing sector rose to a record-high of 62 in January from an upwardly revised reading of 58.7 in December.

Meanwhile, the dollar tumbled to a monthly low of Y81.40 versus the yen, edging closer to November's 15-year low of Y80.23.

Looking at today's economic calendar from the U.S., results of the manufacturing survey of the Institute for Supply Management for the month of January will be released at 10:00 am ET. Economists expect the index to show a reading of 57.5 for January.

At the same time, the Commerce Department will release its construction spending report for the month of December. Economists project that construction spending increased 0.2% for the month.