Investing.com - The dollar fell against most major world currencies on Tuesday as hopes began to build that European policymakers are preparing to take more coordinated steps to firewall the debt crisis and eventually extinguish it.
In Asian trading on Tuesday, EUR/USD was trading up 0.28% at 1.2533.
European Central Bank Governing Council member Ewald Nowotny said earlier he supported the idea of forming a European banking union, which bolstered the euro and sparked demand for risk that came at the dollar's expense.
Fears that upcoming Greek elections will usher in anti-austerity politicians and open the door to a Greek exit from the currency zone have hammered the euro as have Spanish financial concerns, sending investors ditching assets of various classes and running to the safety of the dollar.
Comments out of Portugal earlier that the country's EUR78 billion bailout program remains on schedule coupled with statements from the country's Finance Minister Vitor Gaspar that Lisbon will pump EUR6.65 billion into the country’s banking system fueled risk-on currency demand as well.
Talk continues that the Federal Reserve will stimulate the U.S. economy via monetary easing tools weakened the greenback, as did gains in Asian stock markets, which further eroded demand for low-yielding currencies like the dollar.
The greenback was down against the pound, with GBP/USD up 0.12% and trading at 1.5401.
The U.S. currency was down against the yen, with USD/JPY trading down 0.04% at 78.31, and down against the Swiss franc, with USD/CHF trading down 0.27% at 0.9583.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.24% at 1.0370, AUD/USD up 0.38% at 0.9765 and NZD/USD up 0.45% at 0.7598.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28% at 82.42.
On Tuesday in the U.S., the Institute for Supply Management is to release a report on non-manufacturing activity.
In Asian trading on Tuesday, EUR/USD was trading up 0.28% at 1.2533.
European Central Bank Governing Council member Ewald Nowotny said earlier he supported the idea of forming a European banking union, which bolstered the euro and sparked demand for risk that came at the dollar's expense.
Fears that upcoming Greek elections will usher in anti-austerity politicians and open the door to a Greek exit from the currency zone have hammered the euro as have Spanish financial concerns, sending investors ditching assets of various classes and running to the safety of the dollar.
Comments out of Portugal earlier that the country's EUR78 billion bailout program remains on schedule coupled with statements from the country's Finance Minister Vitor Gaspar that Lisbon will pump EUR6.65 billion into the country’s banking system fueled risk-on currency demand as well.
Talk continues that the Federal Reserve will stimulate the U.S. economy via monetary easing tools weakened the greenback, as did gains in Asian stock markets, which further eroded demand for low-yielding currencies like the dollar.
The greenback was down against the pound, with GBP/USD up 0.12% and trading at 1.5401.
The U.S. currency was down against the yen, with USD/JPY trading down 0.04% at 78.31, and down against the Swiss franc, with USD/CHF trading down 0.27% at 0.9583.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.24% at 1.0370, AUD/USD up 0.38% at 0.9765 and NZD/USD up 0.45% at 0.7598.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28% at 82.42.
On Tuesday in the U.S., the Institute for Supply Management is to release a report on non-manufacturing activity.