By Deborah Levine EURUSD DXY 10_YEAR NEW YORK (MarketWatch) -- Treasury prices slipped and the dollar retained losses on Tuesday after a report showed U.S. housing starts fell more than forecast but permits unexpectedly rose in August. The euro EURUSD +0.03% rose to $1.3701 from $1.3685 in late-afternoon North American trading on Monday. The dollar index DXY -0.44% , which tracks the U.S. unit against a trade-weighted basket of six other currencies, traded at 77.034, from 76.980 before the data and still down from 77.089 Monday. Investors appeared more willing to shift into riskier assets like stocks and the euro after Greece made a debt payment, even after Italy's credit rating was downgraded. "The euro-dollar is marginally firmer amid the hopes that today's phone call between Greece and the Troika will result in Greece getting its next 8-billion euro aid tranche," said Marc Chandler, global head of currency strategy at brown Brothers Harriman. Yields on 10-year notes 10_YEAR +1.44% , which move inversely to prices, rose 3 basis points on the day to 1.98%, up 1 basis point from before the report. Bond traders expect prices to stay in a range until the Federal Reserve ends its two-day meeting Wednesday.

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