U.S. Dollar Steady on Diminishing Risk Aversion

The dollar stood little changed and confined to a narrow range against the euro and yen on Tuesday, as currencies lost some momentum on a slight reduction in geopolitically-inspired risk aversion.  But that said, markets were still unable to fully shake off geopolitical concerns as tensions in the Ukraine and Gaza remained high, limiting the rebound by the dollar and euro against the safe-haven yen.

The dollar crept up 0.1 percent to 101.48 yen, having pulled back from a low of 101.09 hit late last week when a Malaysian airliner was downed over Ukraine and an Israeli ground offensive in Gaza began.

The euro edged up 0.1 percent to 137.26 yen after crawling back from a five-month trough of 136.71 yen hit late last week.  Against the dollar, the common currency was effectively flat at $1.3524 after recovering from a five-month trough of $1.3491 touched on Friday.

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