Investing.com - The dollar edged higher against the other major currencies on Tuesday but gains were limited amid concerns that the political deadlock in Washington will not be resolved ahead of a deadline to avoid a U.S. sovereign default.
During European late morning trade, the dollar pulled away from two-month lows against the yen, with USD/JPY rising 0.34% to 97.03.
President Barack Obama repeated Monday that he is willing to negotiate with congressional Republicans on a range of topics, including healthcare and energy policy, but only after the government is reopened.
President Obama also called on Congress to raise the government borrowing limit ahead of the October 17 deadline, when the Treasury Department has estimated the U.S. government will not have enough cash to pay its bills.
The euro drifted lower against the dollar, with EUR/USD slipping 0.09% to 1.3568.
The single currency shrugged off data showing that German factory orders unexpectedly fell 0.3% in August, following a 1.9% drop in July. Analysts had been expecting a gain of 1.2%.
The pound was also slightly lower against the greenback, with GBP/USD sliding 0.12% to 1.6076.
The dollar gained ground against the Swiss franc, with USD/CHF climbing 0.32% to 0.9056.
In Switzerland, data showed that retail sales rose 2.4% in August from a year earlier, outstripping expectations for a 1% gain.
A separate report showed that Swiss consumer prices were down 0.1% on a year-over-year basis in September, in line with forecasts.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.47% to 0.9472, NZD/USD rising 0.22% to 0.8321 and USD/CAD edging up 0.06% to trade at 1.0318.
The Australian dollar found support after data released on Tuesday showed that China’s HSBC services purchasing managers’ index dipped to 52.4 from August's reading of 52.8, but remained well above the 50 level that separates expansion from contraction.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.09% to 80.09.
The International Monetary Fund was due to release its latest World Economic Outlook later in the day.
During European late morning trade, the dollar pulled away from two-month lows against the yen, with USD/JPY rising 0.34% to 97.03.
President Barack Obama repeated Monday that he is willing to negotiate with congressional Republicans on a range of topics, including healthcare and energy policy, but only after the government is reopened.
President Obama also called on Congress to raise the government borrowing limit ahead of the October 17 deadline, when the Treasury Department has estimated the U.S. government will not have enough cash to pay its bills.
The euro drifted lower against the dollar, with EUR/USD slipping 0.09% to 1.3568.
The single currency shrugged off data showing that German factory orders unexpectedly fell 0.3% in August, following a 1.9% drop in July. Analysts had been expecting a gain of 1.2%.
The pound was also slightly lower against the greenback, with GBP/USD sliding 0.12% to 1.6076.
The dollar gained ground against the Swiss franc, with USD/CHF climbing 0.32% to 0.9056.
In Switzerland, data showed that retail sales rose 2.4% in August from a year earlier, outstripping expectations for a 1% gain.
A separate report showed that Swiss consumer prices were down 0.1% on a year-over-year basis in September, in line with forecasts.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.47% to 0.9472, NZD/USD rising 0.22% to 0.8321 and USD/CAD edging up 0.06% to trade at 1.0318.
The Australian dollar found support after data released on Tuesday showed that China’s HSBC services purchasing managers’ index dipped to 52.4 from August's reading of 52.8, but remained well above the 50 level that separates expansion from contraction.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.09% to 80.09.
The International Monetary Fund was due to release its latest World Economic Outlook later in the day.