LONDON — The European single currency dipped against the dollar on Tuesday, as investors took profits before publication of minutes from the US Federal Reserve's latest monetary policy meeting, dealers said.
In midday trade, the euro dipped to 1.3802 dollars, from 1.3876 dollars late on Friday in New York. Last Thursday it had soared to 1.4029 -- which was last seen at the end of January.
Against the Japanese currency, the dollar eased to 82.03 yen from 82.05 yen, but held above the 15-year low struck on Monday.
"The US dollar has started to regain a little ground after the losses of the last few weeks amid concern that despite all the negativity surrounding the greenback the losses have been too much too quickly," said CMC Markets analyst Michael Hewson.
Later on Tuesday, dealers will digest minutes of the September 21 meeting of the US central bank's Federal Open Market Committee (FOMC).
"Today's focus will be on the release of the latest FOMC minutes for any further insight into the central banks thinking on further stimulus measures," added Hewson.
The dollar had tumbled to a fresh 15-year low point against the yen on Monday amid growing expectations that the Federal Reserve will pump more money to bolster the struggling US economy.
The dollar slumped as low as 81.39 yen -- hitting the lowest point since April 1995 and below the level which had triggered Japanese state intervention in the foreign exchange market on September 15.
Many observers believe the dollar could drop further on expectations that the Fed could take further easing steps next month, complicating any efforts by Japanese authorities to weaken the yen.
"The dollar should keep falling, at least until November's FOMC" Jun Kato, senior manager of investment at Shinkin Asset Management, told Dow Jones Newswires in reference to the US Federal Open Markets Committee meeting.
Japan stepped into the currency markets on September 15 for the first time since 2004 to weaken the yen and help safeguard a fragile economic recovery.
A strong yen harms Japanese exporters by making their products more expensive and eroding the value of their overseas earnings when repatriated.
Approaching midday in London, the euro changed hands at 1.3802 dollars against 1.3876 dollars late in New York on Monday, at 113.22 yen (113.83), 0.8726 pounds (0.8736) and 1.3386 Swiss francs (1.3385).
The dollar stood at 82.03 yen (82.05) and 0.9699 Swiss francs (0.9646).
The pound was at 1.5818 dollars (1.5879).
On the London Bullion Market, the price of gold eased to 1,348.50 dollars an ounce from 1,351.50 dollars an ounce late on Monday.
