NEW YORK. Feb. 28 (Xinhua) - The U.S. dollar fell against major currencies in late New York trading on Tuesday as the euro rebounded before the European Central Bank (ECB) launches its loan operation.

The rating agency Standard & Poor's cut Greece's long-term and short-term sovereign credit ratings to selective default. Also, the ECB said that it had suspended the eligibility of Greek government bonds for use as collateral in the central bank's funding operations.

However, the ECB would launch its second long term refinancing program on Wednesday, hoping to stabilize the sovereign debt market. The euro gained against the dollar on Tuesday.

On economic front, the U.S. consumer confidence jumped to 70.8 in February from 61.5 in January, marking the highest level in a year, according to the Conference Board.

The S&P Case/Shiller Home Price Index dropped 3.8 percent in the fourth quarter of 2011, ending the year at the lowest levels since mid-2006.

The dollar index lost 0.39 percent to 78.26 on Tuesday.

In late Tuesday trading, the dollar bought 80.55 Japanese yen, comparing with 80.49 from late Monday. The euro rose to 1.3459 dollars from 1.3399.

The British pound also rose to 1.5888 dollars from 1.5823. The dollar fell from 0.8996 Swiss francs to 0.8954, and also fell to 0. 9962 Canadian dollars from 0.9986.