Investing.com - The dollar was higher against the euro and the yen on Tuesday, boosted by expectations that the Federal Reserve may start to taper its bond purchasing program later this month.
During European afternoon trade, the dollar was close to six-week highs against the euro, with EUR/USD sliding 0.17% to 1.3170.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
Demand for the dollar was underpinned by expectations that the Fed will start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The dollar was trading close to one-month highs against the yen, with USD/JPY up 0.23% to 99.55, after rising as high as 99.70 earlier.
The dollar briefly erased gains against the yen after Russia’s news agency said a rocket launch was detected in the Mediterranean. Israel later said it carried out a joint missile test with the U.S. in the area.
The dollar was higher against the Swiss franc, with USD/CHF up 0.18% to 0.9361.
The dollar was fractionally lower against the pound, with GBP/USD inching up 0.04% to 1.5551, off session highs of 1.5602.
Sterling advanced to one week highs earlier after showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction purchasing managers' index rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.72% to 0.9041, NZD/USD inching up 0.05% to 0.7812 and USD/CAD down 0.33% to 1.0514.
The Australian dollar found support after the Reserve Bank of Australia left rates on hold at 2.5% on Tuesday and said that it would continue to assess the outlook and adjust policy as needed.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% to 82.38.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.
During European afternoon trade, the dollar was close to six-week highs against the euro, with EUR/USD sliding 0.17% to 1.3170.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
Demand for the dollar was underpinned by expectations that the Fed will start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The dollar was trading close to one-month highs against the yen, with USD/JPY up 0.23% to 99.55, after rising as high as 99.70 earlier.
The dollar briefly erased gains against the yen after Russia’s news agency said a rocket launch was detected in the Mediterranean. Israel later said it carried out a joint missile test with the U.S. in the area.
The dollar was higher against the Swiss franc, with USD/CHF up 0.18% to 0.9361.
The dollar was fractionally lower against the pound, with GBP/USD inching up 0.04% to 1.5551, off session highs of 1.5602.
Sterling advanced to one week highs earlier after showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction purchasing managers' index rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.72% to 0.9041, NZD/USD inching up 0.05% to 0.7812 and USD/CAD down 0.33% to 1.0514.
The Australian dollar found support after the Reserve Bank of Australia left rates on hold at 2.5% on Tuesday and said that it would continue to assess the outlook and adjust policy as needed.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% to 82.38.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.