The U.S Dollar edged up on Tuesday, reversing some of its recent losses but staying close to a 15-month low against a currency basket, as concerns over the UK's sovereign rating prompted some demand for the safe haven of the U.S. unit.
The Dollar may extend its advance from a 15-month low against the currencies of major U.S. trading partners on speculation waning demand for riskier assets will force investors to exit bets against the greenback. The USD gained 0.1% to $1.4980 per EUR yesterday. It touched $1.4626 on Nov. 3, the strongest level in almost a month.
Analysts said investors lacked any catalyst to take the U.S Dollar much lower after its recent sharp falls, but added that the trend towards Dollar weakness remained in place.
Expectations that U.S. interest rates will stay near zero well into next year have encouraged investors to use the U.S Dollar to fund carry trades in higher-yielding assets, particularly when equity markets rally.