The dollar fell on Tuesday as rising global stock markets increased investors' appetites for riskier investments.
Stronger earnings reports from U.S. companies eased worries that the credit crisis will reduce profits and increased investor's demand for higher-yielding assets. The dollar fell versus most currencies except the yen, which also dropped on stock market strength.
In the U.S., the Dow Industrial Average rose 109.26 points to end at 13,676.23, boosting investors' appetites for riskier assets.
The dollar's gain versus the yen was attributed to the Yen carry trade as investors borrowed the low-yielding yen to buy assets in high-yielding currencies. The yen fell against 16 of the most-actively traded currencies on Tuesday.
The dollar was down to $1.4257 per euro from $1.4167 late Monday, while the dollar was at 114.87 yen, gaining from 114.25 yen. The euro was at 163.78 yen from 161.90 yen. The pound sterling was at $2.0496 from $2.0307. The dollar was priced at 1.1733 Swiss Francs from 1.1774.