Investing.com - The U.S. dollar was broadly higher against the other major currencies on Tuesday, after the International Monetary Fund cut its forecast for global growth, while ongoing uncertainty over a Spanish bailout also supported safe haven demand.
During European morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.26% to trade at 1.2935.
The IMF cut its forecast for 2012 global growth to 3.3% from 3.5% 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.
Investors also remained cautious 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.
In testimony to the European Parliament earlier, 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 trading close to a one-month high against the pound, with GBP/USD slipping 0.12% to 1.6006.
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 was little changed against the yen, with USD/JPY edging down 0.01% to 78.31 and gained ground against the Swiss franc, with USD/CHF up 0.32% to 0.9359.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.02% to trade at 0.9767, AUD/USD easing up 0.17% to 1.0208 and NZD/USD inching up 0.06% to 0.8197.
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.
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.
Elsewhere Tuesday, finance ministers from the European Union were holding a day of meetings in Brussels, while German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders.
During European morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.26% to trade at 1.2935.
The IMF cut its forecast for 2012 global growth to 3.3% from 3.5% 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.
Investors also remained cautious 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.
In testimony to the European Parliament earlier, 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 trading close to a one-month high against the pound, with GBP/USD slipping 0.12% to 1.6006.
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 was little changed against the yen, with USD/JPY edging down 0.01% to 78.31 and gained ground against the Swiss franc, with USD/CHF up 0.32% to 0.9359.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.02% to trade at 0.9767, AUD/USD easing up 0.17% to 1.0208 and NZD/USD inching up 0.06% to 0.8197.
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.
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.
Elsewhere Tuesday, finance ministers from the European Union were holding a day of meetings in Brussels, while German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders.