The U.S. dollar dropped in late trading on Tuesday as the euro advanced amid positive signs from Russia-Ukraine peace talks.

The dollar index, which measures the greenback against six major peers, decreased 0.69 percent at 98.4060.

In late New York trading, the euro rose to 1.1095 U.S. dollars from 1.0993 dollars in the previous session, and the British pound decreased to 1.3094 dollars from 1.3098 U.S. dollars in the previous session. The Australian dollar increased to 0.7512 U.S. dollar from 0.7501 dollar.

The U.S. dollar bought 122.92 Japanese yen, lower than 123.60 Japanese yen of the previous session. The U.S. dollar fell to 0.9311 Swiss franc from 0.9351 Swiss franc, and it fell to 1.2494 Canadian dollars from 1.2527 Canadian dollars.

Russian and Ukrainian delegations held a fresh round of face-to-face peace talks in Istanbul on Tuesday. Russian chief negotiator said the talks were "constructive."