"Part of this longer-term dollar-weakness narrative rests on capital shifting out of the U.S. and away from U.S. stocks to the value plays like European banks," Nelson said, adding that the bank tax "doesn't help" such flows.The U.S. 10-year Treasury yield was down 8 basis points to 3.998%, after touching its highest level since November on Friday at 4.206%. Yields move inversely to prices.
U.S. crude oil fell 2.16% to $80.19 a barrel on Tuesday. Brent crude was 2.05% lower at $83.60 per barrel. Global investors were also waiting for Thursday's U.S. inflation figures, which will be a key input into the Federal Reserve's next interest rate decision in September. U.S. inflation likely accelerated slightly to 3.3% year on year in July, while the core rate was likely unchanged at 4.8%, according to a Reuters poll of economists.Reporting by Harry Robertson in London and Scott Murdoch in Sydney; editing by Miral Fahmy, Kirsten DonovanScott Murdoch has been a journalist for more than two decades working for Thomson Reuters and News Corp in Australia.