Investing.com - The dollar held steady against the other major currencies on Tuesday, amid growing concerns over China's economy and uncertainty over whether or not the U.S. will raise interest rates this year.
The dollar edged lower against the yen, with USD/JPY down 0.10% at 119.81.
Concerns over China’s economic woes escalated after data on Monday showed that Chinese industrial profits fell 8.8% in August from a year earlier. It was the largest decline in four years.
Market participants were looking ahead to data on China’s factory sector on Wednesday for further indications on the health of the world’s second-largest economy.
A sharp selloff in China's stock market and an unexpected devaluation in the yuan have roiled global markets in recent months and undermined investor confidence in Beijing's ability to manage its economy.
Sentiment on the dollar was also hit by uncertainty over whether the Federal Reserve will raise short term interest rates this year following mixed messages from central bank policymakers.
New York Fed President William Dudley and San Francisco Fed head John Williams indicated support for a rate hike in 2015 in separate speeches on Monday, but Chicago Fed President Charles Evans said rates should remain on hold until mid-2016.
The remarks came after Fed Chair Janet Yellen said last week that the bank was still on track for a rate hike before the years end.
The dollar was higher against the euro, with EUR/USD down 0.10% at 1.1234.
Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.5173, and lower against the Swiss franc, with USD/CHF slipping 0.10% at 0.9728.
Data earlier showed that U.K. net lending to individuals rose to £4.3 billion last month from £4.0 billion in July, whose figure was upwardly revised from an initially estimated £3.9 billion. Analysts had expected net lending to individuals to rise to £4.1 billion in August.
The Australian dollar was weaker, with AUD/USD edging down 0.24% to 0.6973, while NZD/USD rose 0.28% to 0.6347.
USD/CAD edged up 0.14% to trade at an 11-year peak of 1.3415.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.15.