The euro slipped from a six-week high against the dollar on Tuesday as worries about verbal intervention by the European Central Bank after recent strength in the euro zone common currency tempered buying. Investors were wary ahead of the ECB's monetary policy meeting on Thursday, concerned the central bank would follow through with specific easing actions after announcing its plan to further stimulate the euro zone economy a few weeks ago.
"If (ECB) President Mario Draghi does open the door further to the prospect of Federal Reserve-style asset purchases or warn about an overvalued euro, the single currency could become vulnerable to renewed selling," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. The euro was down slightly against the dollar at $1.3688 after hitting a six-week peak of $1.37 in the wake of a dip in a US manufacturing index in June and a smaller-than-expected rise in US construction spending. The Aussie last traded at US $0.9486, up 0.6 percent after hitting $0.9494, its highest since early November. Against the yen, the dollar was up 0.2 percent at 101.50 yen , still not far from Monday's six-week low of 101.23 yen.