Dollar falls as risk appetite returns

NEW YORK—The dollar fell on Tuesday as traders regained some nerve for riskier trades after a ream of sovereign debt news that caused jitters the day before.

The euro rose to $1.4334 at 2100 GMT up from $1.4236 the day before.

“Risk aversion subsided today, following yesterday’s double blow of Greek sovereign (two year) bond yields surging to 20 percent and the S&P downgrade of the outlook for the US’s AAA credit rating to ‘negative,'” said Michael Woolfolk of BNY Mellon.

“The relief rally bolstered global equities and commodities, while undermining the US dollar and the Japanese yen.”

The dollar fell to 82.57 yen (82.66) but rose to 0.8993 Swiss francs (0.8961).

The pound rose to $1.6316, up from $1.6259 the day before.