Dollar slips

TOKYO: The dollar took a breather from its recent gains on Tuesday, edging away from seven-month highs against a currency basket as investors took stock of U.S. interest rate expectations in coming months.

The dollar index, which tracks the greenback against six major rivals, slipped 0.2 percent to 97.711, after rising as high as 98.169 in the previous session, its highest since March 10.Against the yen, the dollar was down slightly on the day at 103.89. "Rangebound trading continues, with the 104 level heavy for the dollar-yen," said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.

"It´s just short-term guys, playing in the market.

"U.S. interest rates remain a key focus of the markets, he said, with a December rate hike still anticipated.

However, a Fed rate increase this year is still far from a done deal.

Fed Vice Chairman Stanley Fischer said on Monday that economic stability could be threatened by low interest rates, but it was "not that simple" for the Fed to hike.

However, Boston Fed President Eric Rosengren told Reuters the current levels of jobs and inflation support the case for a rate increase soon.