NEW YORK (CNNMoney.com) -- The dollar advanced against the euro Tuesday as the shared currency suffered on worries about whether a European aid package will be enough to solve the zone's debt problems.
What prices are doing: The dollar gained 0.4% against the euro to $1.2684.
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But the greenback fell 0.8% against the British pound at $1.4953 and was down 0.3% versus the yen at ¥92.71.
What's moving the market: The euro soared Monday after European Union officials on Sunday approved a nearly $1 trillion rescue package aimed at stabilizing the currency and providing aid to the region's debt-choked countries. About $77 billion will go toward a euro-stabilization fund.
The overall aim of the package is to put the weight of larger, stronger economies such as Germany and France behind weaker members of the EU -- Greece, Portugal and Spain.
Though markets were initially enthusiastic about the aid package Monday, by Tuesday confidence began to fade as investors turned back to the long-term issues in Europe. World stock markets fell on worries that the aid will not be enough to fix the problems facing many euro zone governments.
Further fueling those worries was a Tuesday report from the International Monetary Fund that predicted the pace of economic growth in Europe would be weak in 2010 and 2011. The report also said the costs of crisis interventions were a "growing concern."
The pound got a boost on news that the British government was deep into talks about forming a coalition government. Reports said the Conservative party was close to a deal with the Liberal Democrats.
What analysts are saying: "Europe [concerns are] definitely the main driver, as we need to see whether these countries can tolerate all these austerity measures," said Kevin Chau, foreign currency analyst at IDEAGlobal.
Investors are looking to see whether Greece will need more money after the "short-term bandage" of a bailout, Chau said.
"Over the long term, Greece will have to be able to produce in a positive way -- on its own," Chau added.
The dollar should hold in a tight range over the next week, Chau said, but he expects the dollar to rise over the medium term. 
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 3.80% | 3.88% | |
| 15 yr fixed | 3.20% | 3.23% | |
| 5/1 ARM | 3.84% | 3.88% | |
| 30 yr refi | 3.82% | 3.93% | |
| 15 yr refi | 3.20% | 3.23% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 32,627.97 | -234.33 | -0.71% |
| Nasdaq | 13,215.24 | 99.07 | 0.76% |
| S&P 500 | 3,913.10 | -2.36 | -0.06% |
| Treasuries | 1.73 | 0.00 | 0.12% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Ford Motor Co | 8.29 | 0.05 | 0.61% |
| Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
| Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
| General Electric Co | 13.00 | -0.16 | -1.22% |
| Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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