U.S. dollar declines against pound as Brexit-related selloff abates

The U.S. dollar fell against the British pound on Tuesday, the first time since Britain' s vote to leave the European Union, as investor appetite for riskier assets recovered and demand for the greenback diminished.

Euro and Sterling suffered heavy losses in the previous two sessions, as the result of Britain' s referendum on Friday spurred great concerns on the economic stability of the UK and Euro area.

Sterling once plunged 11 percent against the greenback, the lowest level in 31 years. The Japanese yen soared to multi-year high against several major peers due to its safe haven status.

The Sterling recovered 0.9 percent against the greenback in late trading on Tuesday, as European Union leaders gathered in Brussels for a two-day meeting to discuss Britain' s decision to leave the bloc, raising speculations that policy makers may take measures to limit the economic fallout.

The U.S. dollar slipped against most major currencies on Tuesday. The dollar index, which tracks the greenback against six major peers, was down 0.25 percent at 96.301 in late trading.

In late New York trading, the euro rose to 1.1046 dollars from 1.1019 dollars of the previous session, and the British pound increased to 1.3321 dollars from 1.3192 dollars. The Australian dollar went up to 0.7361 dollars from 0.7343 dollars.

The dollar bought 102.77 Japanese yen, higher than 101.99 yen of the previous session. The dollar rose to 0.9832 Swiss francs from 0.9776 Swiss francs, and it dipped to 1.3061 Canadian dollars from 1.3092 Canadian dollars. Enditem