Investing.com - The dollar moved broadly higher against the other major currencies on Tuesday, as recent upbeat U.S. data boosted optimism over the strength of the economy.
EUR/USD slid 0.42% to 1.1163, the lowest since September 30.
The greenback strengthened after the Institute for Supply Management said on Monday that its index of manufacturing activity rose to 51.5 last month from August’s reading of 49.4. Analysts had forecast a lesser increase to 50.3.
The report added to optimism over the strength of the ecnomy after Friday’s upbeat U.S. consumer sentiment data.
Market participants were now focusing on Friday’s U.S. nonfarm payrolls report for further indications on the strength of the job market, as the Federal Reserve has indicated that future interest rate decisions will be data-dependent.
GBP/USD dropped 0.69% to trade at a 31-year low of 1.2747.
Research firm Markit said on Tuesday that its U.K. construction purchasing managers' index rose to 52.3 in September from August’s reading of 49.2. Economists had expected the index to drop to 49.0 in September.
But the pound remained under broad selling pressure amid concerns over a ‘hard brexit’ after British Prime Minister Theresa May set a March deadline to begin the UK's formal departure process from the European Union.
USD/JPY climbed 0.70% to a two-week high of 102.34, while USD/CHF advanced 0.66% to 0.9799.
The Australian dollar was weaker, with AUD/USD down 0.13% at 0.7668, while NZD/USD edged up 0.08% to 0.7283.
The Reserve Bank of Australia left its benchmark interest rate unchanged at 1.50% at its first policy meeting chaired by new governor Philip Lowe on Tuesday.
"The board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time," the RBA said in a statement.
Earlier in the day, the Australian Bureau of Statistics said that building approvals declined by 1.8% in August, compared to expectations for a 7.0% drop. Building approvals climbed 12.0% in July, whose figure was revised from a previously estimated 11.3% gain.
Elsewhere, USD/CAD gained 0.41% to trade at 1.3172, the highest since September 30.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.56% at a two-week high of 96.20.