Dollar slips; investors mull corporate results
After initial rally on Bank of America earnings, U.S. currency falls back. Markets await more company figures.
NEW YORK (CNNMoney.com) -- The dollar eased against the euro and yen Monday, with market observers saying investors were waiting for quarterly corporate results coming out over the next few weeks.
The 15-nation euro rose to $1.5896 from $1.5843 in New York late Friday. The dollar slipped to ¥106.71 from ¥106.89 Friday.
"It's a light day and everyone is looking at earnings," said Ashraf Laidi, chief market analyst at CMC Markets.
The euro fell to $1.5829 earlier in the session after Bank of America (BAC, Fortune 500) reported better-than-expected earnings.
The retail banking company said net income during the second quarter was $3.41 billion, or 72 cents a share, down 41% from $5.76 billion, or $1.28, a year earlier. (Full Story)
Still, the company's earnings beat Wall Street's expectations. Analysts surveyed by Thomson Reuters were forecasting Bank of America to report a profit of $2.66 billion, or 53 cents a share, in the quarter.
"Fears of a disappointing result from Bank of America were eliminated and that encouraged the market to take on more risk," said Stephen Malyon, a currency analyst at Scotia Capital in Toronto.
But after the initial gains, the dollar fell back.
Aside from earnings, Laidi thinks the market is preoccupied with the overall economic environment.
"The market is waiting for the next source of bad news, rather than the next source of good news," he said.
Meanwhile, Japan's yen fell to a record low of ¥169.09 against the euro.
"The yen is falling as risk appetite is improving on B of A's better than expected earnings," Laidi said.
The dollar gained against the British pound, which fell to $1.9971 from $1.9980.
The pound came under pressure after David Blanchflower, a member of the Bank of England's Monetary Policy Committee, reportedly said that Britain is probably already in a recession and hinted that the BOE may need to lower interest rates. 
