Investing.com - The U.S. dollar was broadly higher against its major counterparts on Tuesday, after Moody’s lowered credit ratings on five Spanish regions late Monday.
During European morning trade, the dollar was up against the euro, with EUR/USD shedding 0.21% to 1.3031.
The euro came under pressure after ratings agency Moody’s cut the credit ratings of Catalonia and four other Spanish regions late Monday, citing their worsening liquidity positions and predicting that these regions are likely to ask the central government for aid in 2013.
The downgrade comes on the heels of regional elections in Spain. Prime Minister Mariano Rajoy’s center-right Popular Party increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
The greenback was also higher against the pound and the Swiss franc, with GBP/USD down 0.05% to 1.6005 and USD/CHF adding 0.17% to trade at 0.9284.
Elsewhere, the greenback retreated from the highest level since July against the yen, with USD/JPY dipping 0.13% to 79.83.
The yen regained strength after Japan’s finance minister Koriki Jojima denied a report saying that the government has asked the Bank of Japan to boost its asset-buying program by JPY20 trillion.
Meanwhile, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.38% to 0.9960, AUD/USD falling 0.29% to 1.0290 and NZD/USD slipping 0.16% to 0.8163.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.18% to 79.81.
Investors are also turning their attention to the Federal Reserve's two-day policy-setting meeting, which kicks off later in the day, after the central bank announced its third round of quantitative easing last month.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
During European morning trade, the dollar was up against the euro, with EUR/USD shedding 0.21% to 1.3031.
The euro came under pressure after ratings agency Moody’s cut the credit ratings of Catalonia and four other Spanish regions late Monday, citing their worsening liquidity positions and predicting that these regions are likely to ask the central government for aid in 2013.
The downgrade comes on the heels of regional elections in Spain. Prime Minister Mariano Rajoy’s center-right Popular Party increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
The greenback was also higher against the pound and the Swiss franc, with GBP/USD down 0.05% to 1.6005 and USD/CHF adding 0.17% to trade at 0.9284.
Elsewhere, the greenback retreated from the highest level since July against the yen, with USD/JPY dipping 0.13% to 79.83.
The yen regained strength after Japan’s finance minister Koriki Jojima denied a report saying that the government has asked the Bank of Japan to boost its asset-buying program by JPY20 trillion.
Meanwhile, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.38% to 0.9960, AUD/USD falling 0.29% to 1.0290 and NZD/USD slipping 0.16% to 0.8163.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.18% to 79.81.
Investors are also turning their attention to the Federal Reserve's two-day policy-setting meeting, which kicks off later in the day, after the central bank announced its third round of quantitative easing last month.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.