Investing.com - The dollar pushed higher against the yen on Tuesday, but sentiment on the greenback remained fragile 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 afternoon trade, the dollar recovered from two-month lows against the yen, with USD/JPY rising 0.48% to 97.15.
The dollar found support after 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.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
The euro was almost unchanged against the dollar, with EUR/USD dipping 0.02% to 1.3578.
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 slightly higher against the greenback, with GBP/USD edging up 0.07% to 1.6106.
The dollar pushed higher against the Swiss franc, with USD/CHF climbing 0.25% to 0.9050.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.53% to 0.9478, NZD/USD rising 0.22% to 0.8321 and USD/CAD edging up 0.08% to trade at 1.0320.
The Canadian dollar showed little reaction after official data showed that the country’s trade deficit widened unexpectedly in August, expanding to CAD1.31 billion from a deficit of CAD1.19 billion in July. Analysts had expected the deficit to narrow to CAD1.0 billion.
A separate report showed that Canadian housing starts rose to 193,600 units last month from 184,000 units in August. Analysts had expected housing starts to increase to 185,000 units in September.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.05% to 80.06.
The International Monetary Fund was due to release its latest World Economic Outlook later in the day.
During European afternoon trade, the dollar recovered from two-month lows against the yen, with USD/JPY rising 0.48% to 97.15.
The dollar found support after 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.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
The euro was almost unchanged against the dollar, with EUR/USD dipping 0.02% to 1.3578.
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 slightly higher against the greenback, with GBP/USD edging up 0.07% to 1.6106.
The dollar pushed higher against the Swiss franc, with USD/CHF climbing 0.25% to 0.9050.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.53% to 0.9478, NZD/USD rising 0.22% to 0.8321 and USD/CAD edging up 0.08% to trade at 1.0320.
The Canadian dollar showed little reaction after official data showed that the country’s trade deficit widened unexpectedly in August, expanding to CAD1.31 billion from a deficit of CAD1.19 billion in July. Analysts had expected the deficit to narrow to CAD1.0 billion.
A separate report showed that Canadian housing starts rose to 193,600 units last month from 184,000 units in August. Analysts had expected housing starts to increase to 185,000 units in September.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.05% to 80.06.
The International Monetary Fund was due to release its latest World Economic Outlook later in the day.