Dollar sharpens decline on profit-taking

Dollar fell on Tuesday against a basket of major rivals for the second session as traders collect profits after the greenback hit five-month highs yesterday, while 10-year treasury yields backed off multi-year highs. 

The dollar index dipped 0.2% as of 12:07 GMT, to 93.30 from the opening of 93.45, with a session-high at 93.63, and a low at 93.18. 

The dollar index closed down 0.1% yesterday, the first loss in six days after marking a five-month high at 93.95. 

The index marked a 1.2% profit last week, the fifth weekly profit in a row on strong gains in long-term US treasury yields, widening the gap between US yields and others. 

However, 10-year treasury yields have fallen today to 3.052% away from a seven-year peak at 3.128% hit on Friday. 

Now investors await the Federal Reserve's meeting minutes tomorrow to provide clues on the chances of US rate hike next month and the overall future of monetary policy.