The dollar rose to its highest level against the euro in nearly three weeks Tuesday as traders awaited remarks from Federal Reserve Chairwoman Janet Yellen that they hope will shed light on the central bank’s intentions.
The euro fell to $1.1130 late Tuesday in New York, down 0.5% from $1.1188, its level late Monday in New York. The British pound also traded lower, recently trading at $1.5370, down 0.9% from $1.5370.
The euro-dollar pair has emerged as a reliable barometer of investors’ appetite for risk over the past few months, as investors struggle to assess the risks posed by a slowdown in the developing world, and the likely timing of the first Fed interest-rate increase since 2006.
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