US dollar extends recovery as traders eye auction

London

THE US dollar continued its rebound from three-year lows on Tuesday, on the view that the currency was due a modest correction after a sharp decline in recent weeks, and as traders eyed a large US debt auction.

The US Treasury is preparing to sell more than a quarter of a trillion dollars' worth of new debt this week, which analysts said would be a key gauge of international investors' appetite for US assets, after a broad sell-off on worries over the United States' ballooning fiscal deficit.