The U.S. dollar weakened against most major currencies on Tuesday. Despite edging up versus the yen, its pace slowed down from previous sessions.
The dollar soared significantly against the yen in the previous trading days after Bank of Japan promised to continue monetary easing last Thursday until it achieves the 2 percent inflation goal. The central bank also said it would conduct money-market operations so that the monetary base will increase at an annual pace of about 645 billion dollars to 755 billion dollars.
The dollar/yen rate fell below the level of 99 as some investors took profits from previous trading days. Analysts generally predict the yen would stay weak but may take some time to break through the psychological level of 100.
The dollar retreated against the euro as the European Financial Stability Facility (EFSF) sold 8 billion euros (about 11 billion U. S. dollars) of five-year notes, which attracted "exceptionally strong demand", according to EFSF statement.
On the economic front, U.S. wholesale inventories in February dropped 0.3 percent from the previous month, while wholesale sales increased 1.7 percent, the Commerce Department reported.
In late New York trading, the euro rose to 1.3100 dollars from 1.3004 of the previous session and the British pound climbed to 1.5332 dollars from 1.5254. The Australian dollar increased to 1.0503 dollars from 1.0410 dollars.
The dollar bought 99.30 Japanese yen, higher than 99.21 in the previous session. It edged down to 0.9315 Swiss francs from 0.9354 Swiss francs and went down to 1.0153 Canadian dollars from 1.0177 Canadian dollars of the previous trading day.