Early trade in New York: dollar trades lower versus euro

The dollar traded lower against the euro and pared gains against the yen in thin volume on Tuesday as investors adjusted positions for technical levels in the absence of any economic data to drive direction. The dollar earlier moved off a one-month low against a basket of currencies as investors bet that the currency recently had declined too far, too fast despite the debate about when the Federal Reserve would begin to slow its stimulus measures.
The euro rose to its highest level since June 21, as some investors pushed it to the 50 percent Fibonacci retracement of the move from the early April low to the mid-June high. The euro was 0.2 percent higher at $1.3216 with the session peak at $1.3230. The dollar index was last down 0.2 percent at 82.088, also its weakest since June 21. The dollar was up 0.1 percent at 99.78 yen, recovering from a one-week low of 99.13 yen earlier.