Dollar tries out firmer ground, choppy times ahead

The dollar gingerly tested firmer ground on Tuesday after a bout of choppiness and players did not rule out an eventual 1.5 cent retreat by the euro if some long positions grew stale and unwound ahead of expected U.S. easing.

With quantitative easing from the Federal Reserve now well priced-in ahead of its Nov. 2-3 meeting, currencies have broken higher ground against the dollar, with the euro topping $1.4160 last week and the Australian dollar testing parity. more