The euro drifted lower against the dollar Tuesday, ahead of key reports in the U.S., including the latest figures for home sales.
The 16-nation euro dipped slightly in European morning trading to $1.4326 compared with $1.4329 late Monday in New York.
Michael Hewson, a currency analyst with CMC Markets in London, said the slight uptick overnight by the dollar was helped, in part, by U.S. Treasury yields hitting their highest levels since August, pushing above 3.7 percent.
Also helping the dollar are expectations that the U.S. Federal Reserve will start withdrawing its extraordinary liquidity measures and raising interest rates sooner than expected.
In other trading Tuesday, the British pound edged higher to $1.6080 from $1.6052, ahead of final figures for U.K. third-quarter gross domestic product that are likely to signal the economy is closer to pulling out of recession sooner than initially forecast.
Elsewhere, the dollar crept up to 91.20 Japanese yen from 91.15 yen, after the Bank of Japan signaled its intent to keep interest rates low in a bid to combat fears of deflation.
