US dollar drops against euro after sharp rise

The U.S. dollar declined against the euro on Tuesday after its early gains against the shared currency amid mounting concerns about Greece debt issues.

The euro inched up slightly after decreasing 0.6 percent against the greenback in the previous session as officials of the International Monetary Fund (IMF) said Greece has been stuck in negotiations with the IMF and its Eurozone partners on economic reforms required by its lenders to get more aid to solve its pressing debt issues.

The euro was under further pressure as the European Central Bank proposed an increase of constraints on banks when they borrow from the Bank of Greece, according to a report by Bloomberg on Tuesday.

With no significant data coming out of the country, the U.S. dollar traded mixed against other major currencies on Tuesday. The dollar index, which measures the greenback against six major peers, was up 0.03 percent at 97.968.

In late New York trading, the euro rose to 1.0735 dollars from 1.0734 dollars in the previous session, and the British pound increased to 1.4925 dollars from 1.4903 dollars in the previous session. The Australian dollar went down to 0.7707 dollars from 0. 7720 dollars.

The U.S. dollar bought 119.70 Japanese yen, higher than 119.31 yen of the previous session. The U.S. dollar slipped to 0.9551 Swiss francs from 0.9564 Swiss francs, and it climbed to 1.2289 Canadian dollars from 1.2232 Canadian dollars.