European and Asian stocks rose with U.S. equity index futures as a rebound in oil bolstered risk appetite ahead of heavily-anticipated central bank policy meetings this week. The dollar retreated versus all of its major peers, while yuan borrowing costs surged in Hong Kong.

The dollar is set to halt a two-week rally as unexpectedly weak data for August forced investors to reassess whether the U.S. economy is strong enough for the Federal Reserve to raise interest rates this month.

Pound bulls are getting solace as evidence mounts that the resilience of the British economy since the June Brexit vote may be sustained.

The pair was trading near daily highs as investors sold the US dollar broadly again on Friday.

Monday's dip was bought and the US dollar was back under broad selling pressure on Tuesday.