Investing.com - The U.S. dollar was broadly higher against the other major currencies on Tuesday, as deteriorating German economic sentiment and concerns over a delayed bailout payment for Greece supported demand for the safety of the greenback.
During European morning trade, the dollar was close to two-month highs against the euro, with EUR/USD down 0.28% to 1.2675.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to minus 15.7 in November from October’s reading of minus 11.5. Analysts had expected the index come in at minus 9.8 this month.
The report said that "recessionary developments" in the euro zone are expected to curtail German economic growth in the next six months.
Sentiment on the single currency was also hit by concerns over a delayed bailout payment for Greece amid disagreements between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.
A decision on unlocking a EUR31.5 billion bailout installment has been postponed until 20 November.
Meanwhile, ongoing concerns over the U.S. fiscal cliff continued to underpin demand for the greenback.
The greenback was slightly lower against the pound, with GBP/USD easing up 0.11% to 1.5893.
The pound found some support after official data showed that U.K. consumer prices rose sharply in October, as a result of increases in the cost of food, transport and university fees.
The Office for National Statistics said the annual rate of consumer price inflation accelerated to 2.7% in October from 2.2% in September and a five month high.
Elsewhere, the greenback slid against the yen, with USD/JPY losing 0.10% to trade at 79.40, but edged higher against the Swiss franc, with USD/CHF rising 0.23% to 0.9503.
The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.14% to 1.0011, AUD/USD inching down 0.08% to 1.0419 and NZD/USD edging up 0.09% to 0.8181.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.18% to 81.26.
Later Tuesday, the U.S. was to release official data on the federal budget balance.
During European morning trade, the dollar was close to two-month highs against the euro, with EUR/USD down 0.28% to 1.2675.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to minus 15.7 in November from October’s reading of minus 11.5. Analysts had expected the index come in at minus 9.8 this month.
The report said that "recessionary developments" in the euro zone are expected to curtail German economic growth in the next six months.
Sentiment on the single currency was also hit by concerns over a delayed bailout payment for Greece amid disagreements between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.
A decision on unlocking a EUR31.5 billion bailout installment has been postponed until 20 November.
Meanwhile, ongoing concerns over the U.S. fiscal cliff continued to underpin demand for the greenback.
The greenback was slightly lower against the pound, with GBP/USD easing up 0.11% to 1.5893.
The pound found some support after official data showed that U.K. consumer prices rose sharply in October, as a result of increases in the cost of food, transport and university fees.
The Office for National Statistics said the annual rate of consumer price inflation accelerated to 2.7% in October from 2.2% in September and a five month high.
Elsewhere, the greenback slid against the yen, with USD/JPY losing 0.10% to trade at 79.40, but edged higher against the Swiss franc, with USD/CHF rising 0.23% to 0.9503.
The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.14% to 1.0011, AUD/USD inching down 0.08% to 1.0419 and NZD/USD edging up 0.09% to 0.8181.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.18% to 81.26.
Later Tuesday, the U.S. was to release official data on the federal budget balance.