Investing.com - The dollar pushed lower against a basket of other major currencies on Tuesday, as investors continued to lock in profits from the greenback's recent rise to three-month highs as expectations for a U.S. rate hike in the near future still supported the currency.
Trading volumes were expected to remain light with no major U.S. data to be released throughout the day.
The dollar remained supported after Federal Reserve Chair Janet Yellen said last week that the Fed is likely to raise rates "at some point this year."
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.62% at 97.54, still close to Monday's three-month high of 98.31.
EUR/USD gained 0.84% to 1.0913, off three-month lows of 1.0812 hit earlier in the session.
The single currency found mild support after Greek banks reopened on Monday, following a forced 3-week closure, while restrictions on cash withdrawals remained in place.
Also Monday, Greece repaid the totality of its arrears of about €2.0 billion to the International Monetary Fund. "Greece is no longer in arrears to the IMF," the Fund's spokesman Gerry Rice announced on Monday.
"The Fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth," Rice added.
The Greek Parliament was scheduled to vote on further austerity measures on Wednesday.
The pound slipped lower, with GBP/USD down 0.10% to 1.5549.
The U.K. Office for National Statistics reported on Tuesday that public sector net borrowing rose to £8.58 billion in June from £8.35 billion in May, whose figure was downwardly revised from a previously estimated £9.35 billion.
Analysts had expected public sector net borrowing to increase to £8.60 billion last month.
Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY shedding 0.20% to 124.02 and with USD/CHF declining 0.74% to 0.9574.
The franc gained ground after the Swiss Federal Statistical Office said the trade surplus widened to 3.58 billion Swiss francs last month from an upwardly revised 3.41 billion Swiss francs in May. Analysts had expected the trade surplus to narrow to 2.78 billion Swiss francs in June.
The Australian and New Zealand dollars pushed higher, with AUD/USD advancing 0.81% to 0.7432, off the previous session's six-year lows of 0.7325, and with NZD/USD rallying 1.09% to 0.6636.
Earlier Tuesday, the minutes of the Reserve Bank of Australia's July meeting minutes suggested that the bank sees the economy as not weak enough to warrant a rate cut but not strong enough to need a rise.
Meanwhile, USD/CAD dropped 0.47% to 1.2931, pulling away from Monday's six-year highs of 1.3027.