The dollar pared gains Tuesday as investors locked in gains on recent bets against the U.S. currency.
The Wall Street Journal Dollar index, which measures the U.S. currency against a basket of 16 others, was recently unchanged at 84.43, after rising earlier in the session. The gauge hit its lowest closing value since May 2015 on Monday.
Investors have pummeled the dollar in recent weeks amid indications that central banks abroad may tighten monetary policy at a faster pace in response to robust economic growth. Expectations of rising rates overseas can dent the dollar as they potentially make the U.S. currency less attractive to yield-seeking investors.
The dollar is down around 7% in the past year, and some analysts believe the decline is likely to continue.
"Markets are taking a breather from pounding the dollar," analysts at Scotiabank said, in a note to clients. "The broader trends in place in the past few weeks are, however, intact."
The euro was down less than 0.1% at $1.2259.
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(END) Dow Jones Newswires
January 16, 2018 17:51 ET (22:51 GMT)