The dollar fell against major currencies in late trading session on Tuesday as European debt problems continued to worry investors and latest Federal Reserve minutes hinted that there might be a third round of quantitative easing (QE3) policy.
Although Italian debt problems worried investors and pushed up the yields of its government bonds recently, the country still managed to sell 6.75 billion euro 1-year government bond on Tuesday, which helped to ease investors' tensions.
The euro recovered from 4-month trough against the dollar in late trading session but still wavered below 1.41 as the contagion worry lingered.
Meanwhile, the Federal Reserve released the minutes of its latest monetary policy meetings, which showed that some Federal Open Market Committee participates argued for the first time that QE3 might be appropriate if the recovery remains too slow. The argument raised investors' expectations of a possible QE3 and pressured on the dollar.
The dollar index lost 0.06 percent to 75.94 in late trading session.
In late Tuesday trading, the dollar bought 79.43 yen, comparing with 80.13 yen late Monday, and the euro rose to 1.4035 dollars from 1.4024.
The British pound also rose to 1.5939 dollars from 1.5912. The dollar fell from 0.8351 Swiss francs to 0.8299, and also fell to 0. 9637 Canadian dollars from 0.9681.
