NEW YORK — The dollar declined for the second straight day Tuesday, hitting a seven-year low against the Japanese yen and a three-year low against the Swiss franc in reaction to lower U.S. interest rates and concern over the ability of oil producers and refiners to repay loans to American banks.
Gold prices recovered slightly in New York trading after falling in Europe. Republic National Bank of New York said gold was bid at $338.50 an ounce as of 4 p.m. EST, up 50 cents from Monday.
For the second consecutive trading session the dollar was sold off in Europe, falling against all major currencies and trading for less than 1.99 Swiss francs.
Traders attributed the decline to falling U.S. interest rates, which make dollar-denominated investments less attractive, and to worries over the solvency of U.S. loans to Mexico and other energy-related debt.