NEW YORK - THE dollar was mixed against major currencies on Tuesday as stocks seesawed and investors anticipated steep European rate cuts later this week.

The 15-nation euro inched up to US$1.2697 (S$1.94) in late New York trading from US$1.2672 late on Monday, while the British pound fell to US$1.4876 from US$1.491) and the dollar slipped to 93.22 yen (S$1.53) from 93.40 yen.

The dollar has tended to benefit from falling stock markets as investors seek safety in assets such as dollar-denominated US Treasurys.

The Dow Jones industrial average fluctuated in a session marked by indecision, a day after it plunged nearly 680 points.

The Dow closed up 270 points at the 8,419 level and the major indexes all closed with gains of more than 3 per cent.

Investors were wary as the Detroit automakers presented business plans to Congress in hopes of securing US$25 billion in loans to see them into 2009.

Ford Motor asked Congress for a US$9 billion credit line to be used if necessary, and General Motors said it needs US$4 billion in government loans this month and a total of US$12 billion by late March to keep operating.

Shares of both Ford and General Motors rose nearly 6 per cent.

Meanwhile, both the European Central Bank (ECB) and the Bank of England are expected to cut their interest rates on Thursday to support their slumping economies.

While many observers think the ECB will reduce its benchmark rate by half a percentage point to 2.75 per cent - with some thinking it may cut it by three quarters of a point- the Bank of England is expected by many to lower its rate by a whole percentage point to 2.00 per cent, which would be equal to its lowest level since the bank was founded in 1694.

Though lower interest rates can jump-start a nation's economy by encouraging lending, they often weigh on its currency as traders transfer funds to other currencies with higher returns.

In other New York trading, the dollar edged higher to 1.2072 Swiss francs (S$1.53) from 1.2028 late on Monday, and rose to C$1.2539 (S$1.54) from C$1.2386. -- AP