The euro was able to recover against the dollar on Tuesday with the help of demand from investors as well as general expectations that the United States Federal Reserve will use policy to keep its value near its recent high points.

However, a number of other investors thought that the dollar would stay under pressure because of the perception of some that the US Central Bank wouldn’t be willing to tighten its policy in the near future.

Adam Myers, a senior Strategist at Credit Agricole said, “Any rise in the dollar is a good opportunity to sell it since it should remain weak unless the Fed signals it wants to tighten monetary policy… We do not see (Fed chief) Bernanke doing that tomorrow”.

On Tuesday, the euro reached a high of $1.4595, which is not that far off from its 16-month high that was hit last week of $1.4649. This year, the euro has seen a general rise and a number of experts that it was due for a pull-back in value. In fact, some even said that the currency’s earlier drop against the dollar’s rise was mostly just due to anticipation of what would come out of the Fed’s two-day meeting on policy that started on Tuesday.