US$ hits 7-week low on rate jitters

London

THE dollar fell to a seven-week low against a basket of currencies on Tuesday, with investors cutting favourable bets in the currency on growing nervousness about the Federal Reserve's message on interest rates later this week.

Investors were also turning less bearish on the euro going into the year end. Traders said that many investors were unwinding positions where they have sold the euro to buy higher-yielding but riskier assets or currencies amid jitters in the high-yield corporate debt market in the United States.