U.S. Dollar Extends Decline After IMF's Global Growth Downgrade

The U.S. dollar extended its early fall in New York deals on Tuesday, after the International Monetary Fund slashed global growth forecasts for 2015, due to falling commodity prices and bleak growth prospectus in emerging economies.

In its latest World Economic Outlook report, the lender cut outlook for global growth to 3.1 percent, from its July forecast of 3.3 percent growth.

Widening U.S. trade deficit in August, as well as receding expectations for Federal Reserve rate hike in 2015 has been already weighing on the currency.

The greenback fell to 1.5212 against the pound, from an early high of 1.5140. The pair ended Monday's trading at 1.5145. The next possible support for the greenback may be located around the 1.53 zone.

The greenback weakened to 0.9705 against the franc, 1.1249 against the euro and 120.22 against the yen, reversing from its previous high of 0.9767, 4-day high 1.1172 and an 8-day high of 120.57, respectively. If the greenback continues slide, it is likely to find support around 0.95 against the franc, 1.14 against the euro and 118.00 against the yen.