The U.S. dollar came under
pressure and traded lower against other major currencies on Tuesday,
as investors were positioning for a possible new round of monetary
The dollar dropped to the lowest level against the euro, which received a boost after Germany's Constitutional Court confirmed that the ruling on the permanent European bailout fund, the European Stability Mechanism (ESM), will come out on Wednesday despite a new court challenge.
Most investors expected that the court will not interfere with the eurozone rescue plan, thus paving the way for further bailout for those debt-ridden European countries.
Meanwhile, the dollar was weighed down as more and more investors believe that the U.S. Federal Reserve would step up efforts to boost the economy by announcing a new round of bond purchasing at the end of its two-day policy meeting on Thursday.
Additionally, Moody's Investors Service said on Tuesday that it would likely deprive the United States of its triple-A credit rating if the U.S. Congress fails to reach a long-term debt reduction plan next year.
In late Tuesday trading, the euro rose to 1.2860 dollars from Monday's 1.2769. The British pound also went up to 1.6070 dollars from 1.5998.
The dollar slipped to 0.9389 Swiss francs from 0.9464, and dipped to 0.9733 Canadian dollars from 0.9776. And it bought 77.78 Japanese yen as against 78.28 on Monday.
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