Investing.com - The dollar regained ground against the other major currencies on Tuesday, recovering from a decline in the previous session, as investors took profits on the strong gains the greenback posted Friday from a robust U.S. jobs report.

The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.28% to 86.13, off Monday’s lows of 85.73. It notched up its twelfth consecutive weekly gain last week, the longest rally since the index was created in 1971.

EUR/USD hit session lows of 1.2593 and was last down 0.41% to 1.2601.

The single currency came under pressure after data on Tuesday showed that industrial output in Germany dropped by 4.0% in August. It was the largest decline since early 2009 and was much worse than forecasts for a fall of 1.5%.

The report came one day after data showed that German factory orders fell 5.7% in August, fuelling fears that the euro area’s largest economy is falling into a recession.

USD/JPY was down 0.07% to 108.71, off session lows of 108.39.

The yen found support earlier Tuesday after Japanese Prime Minister Shinzo Abe voiced concerns over the impact of a weaker yen on the economy.

The Bank of Japan left monetary policy unchanged at the conclusion of its two day policy meeting earlier, but acknowledged that declining domestic demand as a result of a sales tax increase in April is leading to economic weakness.

The pound and the Swiss franc were also lower, with GBP/USDshedding 0.17% to trade at 1.6054 and USD/CHF adding 0.27% to hit 0.9607.

In the U.K., data showed that industrial output was flat in August, adding to signs that the economic recovery may be moderating.

The Australian dollar was slightly higher, with AUD/USD up 0.17% to 0.8779, off highs of 0.8811. Earlier Tuesday, the Reserve Bank of Australia kept rates on hold at 2.5% and said it expected growth to remain “moderate” over the next several quarters.

Elsewhere, NZD/USD was down 0.26% to 0.7820, while USD/CAD rose 0.38% to 1.1173.