Investing.com - The U.S. dollar remained broadly higher against the other major currencies on Tuesday, as demand for the safe-haven greenback was boosted by concerns over the outlook for global growth and ongoing uncertainty over Spain and Greece.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD down 0.24% to 1.2935.
The International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% earlier in the day and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the single currency was also hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Investors also remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament earlier Tuesday, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
The greenback was hovering close to a one-month high against the pound, with GBP/USD dipping 0.03% to 1.6020.
The pound came under pressure after the IMF said the U.K. economy would contract by 0.4% this year before recovering to 1.1% growth in 2013, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Meanwhile, official data showed that manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop, while industrial production declined 0.5%, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
Elsewhere, the greenback edged lower against the yen, with USD/JPY inching down 0.06% to 78.28, but gained ground against the Swiss franc, with USD/CHF up 0.32% to 0.9361.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.12% to trade at 0.9757, AUD/USD rising 0.37% to 1.0229 and NZD/USD gaining 0.18% to trade at 0.8206.
The commodity linked dollars remained supported after China moved to inject liquidity into markets earlier Tuesday, fuelling speculation that it may announce more stimulus measures.
In Canada, industry data showed that housing starts fell to 220,200 units in September from 225,300 units in August, beating expectations for a decline to 208,000.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19% to 79.83.
Later Tuesday, German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaras were to give a joint statement to the media following talks in Athens. Meanwhile, finance ministers from the European Union were holding a day of talks in Brussels.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD down 0.24% to 1.2935.
The International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% earlier in the day and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the single currency was also hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Investors also remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament earlier Tuesday, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
The greenback was hovering close to a one-month high against the pound, with GBP/USD dipping 0.03% to 1.6020.
The pound came under pressure after the IMF said the U.K. economy would contract by 0.4% this year before recovering to 1.1% growth in 2013, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Meanwhile, official data showed that manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop, while industrial production declined 0.5%, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
Elsewhere, the greenback edged lower against the yen, with USD/JPY inching down 0.06% to 78.28, but gained ground against the Swiss franc, with USD/CHF up 0.32% to 0.9361.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.12% to trade at 0.9757, AUD/USD rising 0.37% to 1.0229 and NZD/USD gaining 0.18% to trade at 0.8206.
The commodity linked dollars remained supported after China moved to inject liquidity into markets earlier Tuesday, fuelling speculation that it may announce more stimulus measures.
In Canada, industry data showed that housing starts fell to 220,200 units in September from 225,300 units in August, beating expectations for a decline to 208,000.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19% to 79.83.
Later Tuesday, German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaras were to give a joint statement to the media following talks in Athens. Meanwhile, finance ministers from the European Union were holding a day of talks in Brussels.