NEW YORK, June 7 (Xinhua) -- The U.S. dollar slipped in late trading on Tuesday as improved market sentiment bolstered demand for higher-risk currencies such as the Australian dollar and sterling.

       The dollar index, which measures the greenback against six major peers, decreased 0.13 percent to 102.3080.

       The euro, the largest component of the index, rallied as investors awaited a key policy meeting by the European Central Bank later this week.

       In late New York trading, the euro increased to 1.0710 dollars from 1.0694 dollars in the previous session, and the British pound was up to 1.2588 dollars from 1.2535 U.S. dollars in the previous session. The Australian dollar was up to 0.7234 dollar from 0.7194 dollar.

       The U.S. dollar bought 132.56 Japanese yen, higher than 131.98 Japanese yen of the previous session. The U.S. dollar rose to 0.9722 Swiss franc from 0.9711 Swiss franc, and it fell to 1.2527 Canadian dollars from 1.2576 Canadian dollars.