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.
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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)