Euro Dips To $1.4963 In European Morning Trade

FRANKFURT (AP) — The euro fell slightly against the dollar Tuesday as investors paused in their sell-off of the American currency, which was hit the previous day by expectations that U.S. interest rates will be left low for some time.

The 16-nation euro bought $1.4963 in European morning trade, lower than the $1.4999 late Monday in New York.

The British pound was also lower, at $1.6672 from $1.6752, while the dollar fell to 89.86 Japanese yen compared with 89.99 late Monday in New York.

Investors tend to leave the dollar for riskier bets when equity markets rally. In the U.S., where interest rates are near zero and not expected to rise for some time, investors have been selling the dollar to raise funds to buy higher-yielding assets elsewhere — a move known as a "carry trade."

On Tuesday, traders seemed to take a pause from borrowing dollars after sending the U.S. currency down on Monday. However, experts warned the "carry trade" still posed some risks as rates are expected to remain low for some time.