The dollar probed recent lows on Tuesday as risk aversion amid the fall in global equities favored peers such as the yen, with uncertain timing about the Federal Reserve’s interest rate hike further undermining the U.S. currency’s appeal.
The dollar index was down 0.2 percent at 85.332, well below the four-year high of 86.746 struck earlier this month when a Fed rate hike in the near term seemed more likely.
The dollar crawled up 0.2 percent to 107.095, but remained in close range of a one-month low of 106.76 hit earlier in the session. The greenback suffered a heavy blow overnight against the safe-haven yen as Wall Street took large hits, with the S&P 500 sliding to a five-month low.
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