Investing.com - The dollar was higher against the euro and the yen on Tuesday as expectations that the Federal Reserve will soon start tapering stimulus underpinned demand for the greenback.
During European morning trade, the dollar was close to six-week highs against the euro, with EUR/USD sliding 0.10% to 1.3179.
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 eased back from one-month highs against the yen, with USD/JPY up 0.12% to 99.44, 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 Swiss franc found support following the reports, with USD/CHF up 0.08% to 0.9352 after rising as high as 0.9376 earlier in the session.
The dollar was lower against the pound, with GBP/USD advancing 0.17% to 1.5570.
Sterling was boosted after data 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 up 0.58% to 0.9030, NZD/USD slipping 0.10% to 0.7802 and USD/CAD easing down 0.12% to 1.0536.
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 0.05% to 82.35.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.
During European morning trade, the dollar was close to six-week highs against the euro, with EUR/USD sliding 0.10% to 1.3179.
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 eased back from one-month highs against the yen, with USD/JPY up 0.12% to 99.44, 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 Swiss franc found support following the reports, with USD/CHF up 0.08% to 0.9352 after rising as high as 0.9376 earlier in the session.
The dollar was lower against the pound, with GBP/USD advancing 0.17% to 1.5570.
Sterling was boosted after data 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 up 0.58% to 0.9030, NZD/USD slipping 0.10% to 0.7802 and USD/CAD easing down 0.12% to 1.0536.
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 0.05% to 82.35.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.