Investing.com - The dollar moved lower against the euro and the safe haven yen on Tuesday, nearing four months lows against the Japanese currency as the ongoing collapse in oil prices and lingering fears over China hit risk sentiment.
Crude oil prices fell again on Tuesday, hitting fresh 12-year lows amid concerns that slowing global demand is fueling a massive supply glut.
Investors also remained concerned over the extent of the economic slowdown in China, following a steep selloff in Chinese stocks and a renewed devaluation in the yuan since the start of the year.
Shares in China closed higher on Tuesday, after Beijing stepped up measures to support the yuan. China’s central bank guided the yuan higher for a third day, but uncertainty over Beijing’s currency policy persisted.
USD/JPY hit lows of 117.22, not far from Monday’s more than four-month trough of 116.68 and was last at 117.49, down 0.24% for the day.
The low yielding euro rose 0.33% against the dollar to 1.0896.
Meanwhile, the pound remained close to five-and-a-half year low, with GBP/USD at 1.4528 amid expectations that Thursday’s Bank of England meeting minutes will indicate that interest rates are likely to remain on hold for some time to come.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 98.67.