By Deborah Levine
NEW YORK (MarketWatch) -- The euro extended gains against the dollar on Tuesday, touching $1.27 as U.S. stocks gained and analysts expected the Federal Reserve to ease monetary policy in some way when it concludes a two-day meeting on Wednesday. The euro EURUSD +0.8998% rose as high as $1.2708, then slipped to $1.2691, still up from $1.2572 on Monday. The shared currency hasn't closed above $1.27 since May 22, according to FactSet Research. The dollar index DXY -0.67% , which measures the greenback against a basket of six currencies, fell to 81.375, from 82.002 in late North American trading on Monday.
