The U.S. dollar was higher against the euro, the yen and the Swiss franc on Tuesday following news that Citigroup Inc. will sell a $7.5 million stake to Abu Dhabi Investment Authority.
Citigroup said it will sell a $7.5 billion stake to the investment arm of the Abu Dhabi government in a deal that would offer a increase of funds to the bank. The nation's largest bank, has suffered severe losses amid the ongoing crisis in the U.S. subprime mortgage market.
The market response really highlights just how frail the banking sector is perceived to be in light of the subprime crisis, economists at UBS said in a note to clients.
The euro traded at $1.4860, down from $1.4868 late Monday in New York. Later, in midday trading in New York, the euro fetched $1.4815. Other dollar rates in Europe, compared with late Monday, included 108.44 Japanese yen, up from 107.86; 1.1002 Swiss francs, up from 1.0988; and 0.9965 Canadian dollars, up from 0.9878.
The euro traded 0.2 percent lower today day at $1.4852 to the Euro and about a cent below last week's record highs.