NEW YORK (TheStreet) -- The euro slipped back from seven-month highs against the dollar on Tuesday.

The European currency bought $1.4218 in morning trading and the British pound converted into $1.6437. The dollar was lower against the Japanese currency, buying 93.9750 yen.

Currency trading could gain direction from U.S. Federal Reserve Chairman Ben Bernanke's semiannual report on monetary policy to the House Financial Services Committee.

Gains in equity markets had weakened demand for the dollar as investors exited the traditional safe haven of the U.S. currency. Strong corporate earnings also have been cited as increasing the appetite for risk, though today's announcements paint a mixed picture.

Coca-Cola reported a 43% jump in second-quarter earnings, Merck ( MRK) topped estimates and Schering-Plough's ( SGP) net income soared.

On the downside, Continental Airlines (CAL) ( CAL) posted a loss and announced more job cuts and DuPont ( DD) earnings plummeted 61%.

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This article was written by a staff member of The Associated Press also contributed to this report.