1st LD Writethru: U.S. dollar falls on profit-taking

The U.S. dollar dropped against most major currencies on Tuesday as investors took profits after the greenback soared to months' high.

In the previous session, the dollar index, which measures the greenback against six major peers, registered the highest level in three months of 97.863 in late trading.

The index retreated 0.71 percent to 97.333 in late trading on Tuesday on mild profit-taking.

The recent round of strong dollar was based on market expectation that the Federal Reserve may raise interest rates by year-end.

Fed Chair Janet Yellen and some other Fed senior officials have stressed several times recently that U.S. benchmark rates will go up later this year if the economy keeps expanding.

In late New York trading, the euro rose to 1.0943 dollars from 1.0824 dollars in the previous session, and the British pound dipped to 1.5553 dollars from 1.5560 U.S. dollars in the previous session. The Australian dollar increased to 0.7426 dollars from 0. 7370 dollars.

The U.S. dollar bought 123.94 Japanese yen, lower than 124.30 yen of the previous session. The U.S. dollar slipped to 0.9580 Swiss francs from 0.9646 Swiss francs, and it fell to 1.2960 Canadian dollars from 1.2997 Canadian dollars. Endite