Dollar falls against euro as China raises rates

The U.S. dollar fell to the euro in late trading Tuesday after China announced that it would increase rates. Investors have also become less worried about the unrest in Egypt, moving away from the dollar and looking to invest in riskier currencies.

China's central bank said Tuesday that it would increase deposit and lending interest rates by a quarter percentage point, the second time China has raised rates in over a month.

"It was expected, but the time was unknown," said Camilla Sutton, chief currency strategist at Scotia Capital. "Investors are anticipating more interest rate hikes out of China."