The U.S. dollar slipped in late trading on Tuesday as improved market sentiment bolstered demand for higher-risk currencies such as the Australian dollar and sterling. The dollar index, which measures the greenback against six major peers, decreased 0.13pc to 102.3080. The euro, the largest component of the index, rallied as investors awaited a key policy meeting by the European Central Bank later this week. In late New York trading, the euro increased to $1.0710 from $1.0694 in the previous session, and the British pound was up to $1.2588 from $1.2535 in the previous session. The Australian dollar was up to $0.7234 from $0.7194.