Investing.com - The U.S. dollar was trading in a tight range against its major counterparts on Tuesday, as sustained concerns over rising Spanish borrowing costs offset speculation over the possibility of fresh economic stimulus by China.
During European morning trade, the dollar was hovering close to a two-year high against the euro, with EUR/USD inching up 0.08% to hit 1.2551.
Investor sentiment was supported by speculation that China may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
But market participants remained cautious amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
The yield on Spanish 10-year bonds eased back to 6.44% earlier, after hitting 6.50% on Monday, the 2012 high, after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The greenback was marginally lower against the pound, with GBP/USD edging up 0.12% to hit 1.5701.
Elsewhere, the greenback inched higher against the yen but edged lower against the Swiss franc, with USD/JPY easing up 0.04% to hit 79.37 and USD/CHF dipping 0.11% to hit 0.9572.
In Japan, official data showed earlier that retail sales rose less-than-expected in April, advancing 5.8%, disappointing expectations for a 6.2% increase.
A separate report showed that household spending in Japan rose 2.6% in April, beating expectations for a 2.5% rise.
The greenback was fractionally lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.08% to hit 1.0227, AUD/USD adding 0.17% to hit 0.9868 and NZD/USD edging up 0.01% to hit 0.7619.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slid 0.13%, to trade at 82.23.
Later in the day, the U.S. was to release reports on house price inflation and consumer confidence.
During European morning trade, the dollar was hovering close to a two-year high against the euro, with EUR/USD inching up 0.08% to hit 1.2551.
Investor sentiment was supported by speculation that China may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
But market participants remained cautious amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
The yield on Spanish 10-year bonds eased back to 6.44% earlier, after hitting 6.50% on Monday, the 2012 high, after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The greenback was marginally lower against the pound, with GBP/USD edging up 0.12% to hit 1.5701.
Elsewhere, the greenback inched higher against the yen but edged lower against the Swiss franc, with USD/JPY easing up 0.04% to hit 79.37 and USD/CHF dipping 0.11% to hit 0.9572.
In Japan, official data showed earlier that retail sales rose less-than-expected in April, advancing 5.8%, disappointing expectations for a 6.2% increase.
A separate report showed that household spending in Japan rose 2.6% in April, beating expectations for a 2.5% rise.
The greenback was fractionally lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.08% to hit 1.0227, AUD/USD adding 0.17% to hit 0.9868 and NZD/USD edging up 0.01% to hit 0.7619.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slid 0.13%, to trade at 82.23.
Later in the day, the U.S. was to release reports on house price inflation and consumer confidence.