Investing.com - The U.S. dollar was broadly higher against its major counterparts on Tuesday, as weak U.S. retail sales data and ongoing concerns over sovereign ratings cuts in the euro zone weighed ahead of the Federal Reserve’s policy announcement.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.54% to hit 1.3116.
The single currency remained under heavy selling pressure amid concerns over the threat of sovereign rating downgrades across the euro zone, after last week’s European Union summit failed to produce concrete plans to resolve the region’s debt crisis.
Ratings agency Moody's said it would review ratings of all EU member states in the first quarter of 2012, while Fitch Ratings said the summit had failed to provide a "comprehensive" solution to the debt crisis.
The euro had edged higher against the dollar earlier after data showed that an index of German economic sentiment rose for the first time in ten months in December, confounding expectations for a decline but the report said perceptions of current developments remained on a downward trend.
The greenback was also higher against the pound, with GBP/USD down 0.24% to hit 1.5545.
In the U.K., official data showed that consumer price inflation declined in line with expectations in November, easing to 4.8% year-on-year, supporting the Bank of England’s view that inflation will moderate in the coming months.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY sliding 0.10% to hit 77.85, and USD/CHF rising 0.45% to hit 0.9412.
Earlier Tuesday, the Swiss State Secretariat for Economic Affairs lowered its economic growth forecast to 0.5% in 2012 from 0.9% in September.
The report also forecast a 1.8% rise in the country’s gross domestic product in the fourth quarter, from a 1.9% increase in the third quarter.
Meanwhile, Japan’s Finance Minister Jun Azumi said European leaders should do more to resolve the debt crisis, before asking for funds from the International Monetary Fund.
Elsewhere, the greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.17% to hit 1.0289, AUD/USD adding 0.16% to hit 1.0089 and NZD/USD dipping 0.03% to hit 0.7626.
The National Australia Bank said earlier that its index of business confidence remained unchanged in November, supported by mining as well as the retail and services sectors.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.38% to hit an 11-month high of 80.53.
Earlier in the day, official data showed that U.S. retail sales increased 0.2% in November, after rising by an upwardly revised 0.6% the prior month, disappointing expectations for a 0.6% gain.
Core retail sales, which exclude automobile sales, rose 0.2% after advancing 0.6% in October. Analysts had expected core retail sales to rise by 0.5% in November.
The Federal Reserve was to announce its federal funds rate later Tuesday.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.54% to hit 1.3116.
The single currency remained under heavy selling pressure amid concerns over the threat of sovereign rating downgrades across the euro zone, after last week’s European Union summit failed to produce concrete plans to resolve the region’s debt crisis.
Ratings agency Moody's said it would review ratings of all EU member states in the first quarter of 2012, while Fitch Ratings said the summit had failed to provide a "comprehensive" solution to the debt crisis.
The euro had edged higher against the dollar earlier after data showed that an index of German economic sentiment rose for the first time in ten months in December, confounding expectations for a decline but the report said perceptions of current developments remained on a downward trend.
The greenback was also higher against the pound, with GBP/USD down 0.24% to hit 1.5545.
In the U.K., official data showed that consumer price inflation declined in line with expectations in November, easing to 4.8% year-on-year, supporting the Bank of England’s view that inflation will moderate in the coming months.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY sliding 0.10% to hit 77.85, and USD/CHF rising 0.45% to hit 0.9412.
Earlier Tuesday, the Swiss State Secretariat for Economic Affairs lowered its economic growth forecast to 0.5% in 2012 from 0.9% in September.
The report also forecast a 1.8% rise in the country’s gross domestic product in the fourth quarter, from a 1.9% increase in the third quarter.
Meanwhile, Japan’s Finance Minister Jun Azumi said European leaders should do more to resolve the debt crisis, before asking for funds from the International Monetary Fund.
Elsewhere, the greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.17% to hit 1.0289, AUD/USD adding 0.16% to hit 1.0089 and NZD/USD dipping 0.03% to hit 0.7626.
The National Australia Bank said earlier that its index of business confidence remained unchanged in November, supported by mining as well as the retail and services sectors.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.38% to hit an 11-month high of 80.53.
Earlier in the day, official data showed that U.S. retail sales increased 0.2% in November, after rising by an upwardly revised 0.6% the prior month, disappointing expectations for a 0.6% gain.
Core retail sales, which exclude automobile sales, rose 0.2% after advancing 0.6% in October. Analysts had expected core retail sales to rise by 0.5% in November.
The Federal Reserve was to announce its federal funds rate later Tuesday.