NEW YORK, Jan 24: The dollar recovered a few of the previous session’s sharp losses on Tuesday, as oil prices eased and stock markets stabilized, prompting profit-taking in currencies that had gained at the dollar’s expense.

Analysts’ perception that US interest rate rises may soon end also gave the dollar a negative undertone.

“The dollar is trading within a tight range against major currencies as risk aversion negativity has disappeared for the time being, due to stability returning to equity markets and energy prices,” said Peter Frank, senior foreign exchange strategist with ABN AMRO in Chicago.

Early afternoon in New York, the euro was trading down 0.2 per cent from late Monday at $1.2287, having struck a four-month high of $1.2323 in Asian trade.

“We are seeing a consolidation more than anything and maybe a bit of profit-taking overnight after two days of pretty aggressive dollar selling,” said Omer Esiner, market analyst, with Ruesch International in Washington DC.

The dollar gained about 15 per cent against the euro and the yen during 2005 mainly because US rate hikes burnished the allure of dollar-denominated deposits to global investors.—AFP