Stocks were declining on Tuesday and the dollar was higher against the better-yielders as traders perhaps took some profits off the table after Monday's 7% gain.

The DOW was recently lower by 0.65% after gaining nearly 500 points yesterday. The broader S&P was off by 0.83% and the NASDAQ by 1.47%.

Traders remained encouraged that the Treasury's plan in purchase troubled bank assets in partnership with private investors would draw sufficient demand, although it still remains to be seen how deeply the banks will have to bring down the prices on the securities to meet bids and whether they will be willing to do so. The mark-down will unquestionably be smaller than it would have been while the credit-securities market was frozen, but it will still entail a certain amount of pain for the firms.

Banks could also choose to hold their securities if the market bids up the prices.

The dollar was mostly higher on the day as stocks declined, with gains of 0.51% on the euro, 0.28% on Australia's currency and 1.09% against the yen as it declined by 1.26% to sterling.

Crude for April delivery was recently trading lower by 75 cents while April gold was losing $14.20.