The dollar fell against the better-yielding currencies on Tuesday as stocks rose, closing out the first quarter of 2009 on a positive note.

The 8.1% gain seen in March was the best monthly gain since 2002 but looking ahead, traders will now turn to earnings reports and the outcome of the government's bank stress-tests, especially after Treasury Secretary Tim Geithner said on Sunday it was likely that some financial firms would need additional cash from the government.

At Tuesday’s close of floor trading on the NYSE, the DOW was on 7608.92 after a gain of 86.90 points (1.16%) while the S&P finished on 797.87, up 10.34 points (1.31%). The technology-heavy NASDAQ closed on 1528.59 after rising 28.79 points (1.78%).

The dollar traded in risk-acceptance mode (weaker against the higher-yielders and stronger vs. the yen) as stocks advanced. On the day, the greenback ended with a loss of 0.50% to the euro, 0.35% against the pound and 1.51% against Australia's currency as it gained 1.69% to the yen.

Treasuries ended higher even as stocks were advanced. On the day, yield on the 2-year note fell 5.1 basis points to 0.799% while yield on the 10-year note lost 4.5 basis points to 2.671%.

Crude for April delivery was recently trading up 56 cents (1.18%) to $48.55 per barrel as the dollar weakened.

Gold for April delivery was recently trading up $3.00 (0.33%) to $918.50 per ounce.