Investing.com - The U.S. dollar was higher against the euro but lower against the yen on Tuesday, as fresh concerns over the situation in the euro zone weighed on investor confidence, supporting safe haven demand.
During European morning trade, the dollar was higher against the euro, with EUR/USD down 0.23% to 1.2900.
Sentiment on the single currency was hit by German media reports that lawyers for the German central bank are examining the legality of the European Central Bank's bond purchasing program, setting the stage for a possible legal challenge.
Investors continued to remain cautious amid lingering uncertainty over whether Spain will request a full scale sovereign bailout.
Meanwhile, concerns over Greece continued to weigh, as Athens prepared to present a package of spending cuts at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.
The euro remained somewhat supported following the release of encouraging German consumer confidence data.
The forward looking German GfK consumer sentiment index was unchanged at 5.9 for October, in line with expectations. The economic expectations component of the index rose to minus 17.2 points in September from minus 18.9 points in August.
The greenback was marginally lower against the pound, with GBP/USD easing up 0.10% to 1.6233.
In the U.K., data released by the British Bankers Association showed that the number of mortgage approvals rose unexpectedly in August.
The BAA said mortgage approvals totaled 30,533 in August, up from an upwardly revised 28,800 in July. Economists had forecast approvals to fall to 28,600 in August.
Elsewhere, the greenback was lower against the yen, with USD/JPY losing 0.19% to hit 77.70, but pushed higher against the Swiss franc, with USD/CHF easing up 0.14% to 0.9370.
Speaking earlier, Swiss National Bank Chairman Thomas Jordan said it was still too early to say if the crisis in the euro zone is easing despite falling sovereign bond yields and reiterated that downside risks to the Swiss economy remain high.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.13% to 0.9801, AUD/USD dipping 0.04% to 1.0421 and NZD/USD rising 0.15% to 0.8240.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.11% to 79.67.
Later in the day, European Central Bank President Mario Draghi was to meet with German Chancellor Angela Merkel in Berlin.
During European morning trade, the dollar was higher against the euro, with EUR/USD down 0.23% to 1.2900.
Sentiment on the single currency was hit by German media reports that lawyers for the German central bank are examining the legality of the European Central Bank's bond purchasing program, setting the stage for a possible legal challenge.
Investors continued to remain cautious amid lingering uncertainty over whether Spain will request a full scale sovereign bailout.
Meanwhile, concerns over Greece continued to weigh, as Athens prepared to present a package of spending cuts at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.
The euro remained somewhat supported following the release of encouraging German consumer confidence data.
The forward looking German GfK consumer sentiment index was unchanged at 5.9 for October, in line with expectations. The economic expectations component of the index rose to minus 17.2 points in September from minus 18.9 points in August.
The greenback was marginally lower against the pound, with GBP/USD easing up 0.10% to 1.6233.
In the U.K., data released by the British Bankers Association showed that the number of mortgage approvals rose unexpectedly in August.
The BAA said mortgage approvals totaled 30,533 in August, up from an upwardly revised 28,800 in July. Economists had forecast approvals to fall to 28,600 in August.
Elsewhere, the greenback was lower against the yen, with USD/JPY losing 0.19% to hit 77.70, but pushed higher against the Swiss franc, with USD/CHF easing up 0.14% to 0.9370.
Speaking earlier, Swiss National Bank Chairman Thomas Jordan said it was still too early to say if the crisis in the euro zone is easing despite falling sovereign bond yields and reiterated that downside risks to the Swiss economy remain high.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.13% to 0.9801, AUD/USD dipping 0.04% to 1.0421 and NZD/USD rising 0.15% to 0.8240.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.11% to 79.67.
Later in the day, European Central Bank President Mario Draghi was to meet with German Chancellor Angela Merkel in Berlin.