U.S. stocks added to a global selloff on Monday as markets digested news of capital controls in Greece and the country veered toward a default on its debt, while the euro recouped some of its earlier losses against the dollar.
The dollar inched up against the euro on Tuesday but its longer-term rally remained in uncertain territory after the worst monthly performance in almost four years in April.
The euro declined against the yen for the first time in three days after European Central Bank Vice President Vitor Constancio said policy makers may consider buying government debt next quarter.
The euro dropped the most in 12 weeks against the yen as European Central Bank President Mario Draghi said policy makers would broaden asset purchases if the inflation outlook for the region slowed.
The euro declined against the dollar after Reuters reported the European Central Bank is looking to buy corporate bonds on the secondary markets, damping demand for the shared currency.
The dollar declined for the first time in three days after Federal Reserve officials said a worldwide economic slowdown may delay interest-rate increases, damping demand for the U.S. currency.
The dollar fell the most in two weeks on speculation the currency strengthened too rapidly in September and before factory orders data today that may highlight the uneven nature of the U.S. recovery.
The yen dropped from a three-week high as tensions eased in Ukraine and the U.S. showed signs of pushing back militants in Iraq, reducing haven demand.
The dollar extended its streak of declines to the longest since April as economists forecast reports this week will show slowing factory output and a smaller gain in new home sales in the world’s largest economy.
