Investing.com - The U.S. dollar was broadly lower against the other major currencies on Monday, as sign of progress in resolving the U.S. fiscal cliff buoyed market sentiment.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD rising 0.20% to 1.2768.
Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."
The euro was also supported by hopes that officials from the International Monetary Fund and the euro zone would reach an agreement on a delayed bailout payment for Greece.
But concerns over the economic outlook for the euro zone persisted after Germany's central bank warned earlier that economic growth in the bloc’s largest economy is weakening, as a result of the crisis in the region, as well as problems in the global economy.
The greenback was slightly lower against the pound, with GBP/USD easing up 0.11% to 1.5899.
Elsewhere, the greenback eased back from a seven-month high against the yen, with USD/JPY sliding 0.18% to 81.17 and was lower against the Swiss franc, with USD/CHF down 0.25% to 0.9431.
The yen remained broadly weaker ahead of Japanese elections on December 16 which are likely to see the opposition party, which advocates more aggressive monetary easing measures by the Bank of Japan, come to power.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.44% to trade at 0.9968, AUD/USD rising 0.60% to 1.0402 and NZD/USD up 0.60% to 0.8174.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% to 81.07.
Later Monday, the U.S. was to release an industry report on existing home sales.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD rising 0.20% to 1.2768.
Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."
The euro was also supported by hopes that officials from the International Monetary Fund and the euro zone would reach an agreement on a delayed bailout payment for Greece.
But concerns over the economic outlook for the euro zone persisted after Germany's central bank warned earlier that economic growth in the bloc’s largest economy is weakening, as a result of the crisis in the region, as well as problems in the global economy.
The greenback was slightly lower against the pound, with GBP/USD easing up 0.11% to 1.5899.
Elsewhere, the greenback eased back from a seven-month high against the yen, with USD/JPY sliding 0.18% to 81.17 and was lower against the Swiss franc, with USD/CHF down 0.25% to 0.9431.
The yen remained broadly weaker ahead of Japanese elections on December 16 which are likely to see the opposition party, which advocates more aggressive monetary easing measures by the Bank of Japan, come to power.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.44% to trade at 0.9968, AUD/USD rising 0.60% to 1.0402 and NZD/USD up 0.60% to 0.8174.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% to 81.07.
Later Monday, the U.S. was to release an industry report on existing home sales.