The dollar tumbled on Tuesday against the euro, the yen and sterling as a fall in benchmark yields to all-time lows caused investors to shun dollar-denominated assets. The euro hit a three-month high at $1.3261. And the dollar index, which measures the greenback against a basket of currencies, fell below its 200-day moving average for the first time since January, which analysts said signals more declines.
Yields on benchmark two-year Treasury notes fell to a record low of 0.534 percent earlier. The euro was last up 0.3 percent at $1.3230 and was still in an uptrend after Monday's break at $1.3125 of a 38.2 percent Fibonacci retracement of its move from the November peak to the June trough, according to Reuters data.
The next threshold on that basis is the 50 percent retracement around $1.3510. Sterling was up 0.2 percent at $1.5924, near a six-month peak of $1.5968 hit earlier. The dollar index was down 0.4 percent at 80.640 and the greenback fell to 85.69 yen, its weakest level since November. The euro shed 0.6 percent to 113.31 yen.