Pecker is a key witness in the case against the former US president, who is accused of falsifying business records to cover up hush-money payment
The 15-nation euro bought US$1.5955 in morning European trading, up from the US$1.5916 it bought in New York late Monday. The British pound rose to US$1.9984 from US$1.9944.
The U.S. Federal Reserve and the Treasury announced steps Sunday to shore up Fannie Mae and Freddie Mac, whose shares have plunged as losses from their mortgage holdings threatened their financial survival.
The news initially caused the dollar to rebound but this is already looking to be short lived as cynicism over the bailout builds and traders wonder just how long this ... credit squeeze will continue for," said James Hughes, a currency analyst at CMC Markets.
Further direction to currency trading could come from the release later Tuesday of the ZEW institute's monthly survey of investor confidence in Germany, a closely watched indicator for Europe's biggest economy.
The dollar was also weaker against the Japanese currency after Japan's central bank left interest rates steady, buying 105.56 yen down from 106.12 yen late on Monday.
Pecker is a key witness in the case against the former US president, who is accused of falsifying business records to cover up hush-money payment
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