On Tuesday in New York trading the dollar sell-off continued as rising U.S. equities helped yield-seeking investors slough off caution before this week’s key policy meetings.

Dollar continued to remain low

The dollar continued to remained near its intraday lows against a string of widely traded currencies in choppy trading. Analysts said that the dollar should continue to slide as risk appetite builds if stocks continue to extend their gains.

Investors turned to higher-yielding currencies

As most Asian shares and European stocks moved higher investors turned to higher-yielding currencies overnight, this triggered a new wave of risk-taking. High-yielding currencies have backed off their overnight highs in New York trading, but trading is somewhat volatile.

Bloc currencies were the top performers

Brown Brothers Harriman analysts said that Overnight, the dollar bloc currencies were the top performers, which has been led by the New Zealand dollar, by which a new high for the year has been set after posting its lowest annual current account deficit in more than four years.

Euro Hit fresh 12-Month High

As traders abandoned the positions they’d staked out Monday in anticipation of this week’s meetings of the G-20 and the Federal Open Market Committee, the euro hit $1.4822 which is a fresh 12-month high whereas the dollar hit CHF10216 which is a new 12-month low .

According to EBS via CQG, late morning in New York, the euro was at $1.4803 from $1.4676 late Monday. The dollar was at Y91.03 from Y92.05. The euro was at Y134.83 from Y135.09. The U.K. pound was at $1.6372 from $1.6206, while the dollar was at CHF1.0233 from CHF1.0327.

The U.K. pound has strengthened

Against a backdrop of dollar weakness, the U.K. pound has strengthened to several intraday highs, as it hits $1.6380. The pound had been under pressure as there are concerns about U.K.’s banking system and policy official comments that the U.K. might lower key interest rates even further.

When economic conditions brighten, yield-seeking investors by whom a risk-based trading strategy is employed ditch the safe-haven dollar for higher-yielding currencies, such as the euro. But even the safe-haven Swiss franc has strengthened overnight to its highest level in 12 months, it has showed that just how broad the dollar sell-off had became.

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