Investing.com - The dollar was little changed at a one-month high against the other major currencies on Tuesday, as optimism over the strength of the U.S. economy continued to support demand for the greenback.
USD/JPY gained 0.35% to 113.07.
The safe-haven yen strengthened earlier after data showed that activity in China’s manufacturing sector contracted for the seventh straight month in February.
The official manufacturing purchasing managers' index fell to 49.0 from January's reading of 49.4, falling further below the 50 level that separates growth from contraction. Economists had expected the index to tick down to 49.3.
The private sector Caixin manufacturing PMI was also weaker, falling to 48.0, from 48.4 in January, undershooting market expectations of 48.3.
EUR/USD was steady at 1.0876.
Eurostat said that the euro zone’s unemployment rate fell to 10.3% from 10.4% in December. This is the lowest rate recorded in the euro area since August 2011. Analysts had expected the jobless rate to hold steady at 10.4% in January.
But sentiment on the single currency remained vulnerable after data on Monday showed that the euro area fell back into deflation in February, cementing expectations for more easing by the European Central Bank at its upcoming meeting on March 10.
The dollar was lower against the pound, with GBP/USD climbing 0.47% to 1.3980 and was little changed against the Swiss franc, with USD/CHF at 0.9987.
Research group Markit said that its U.K. manufacturing PMI fell to 50.8 last month from a reading of 52.9 in January. Analysts had expected the index to inch down to 52.2 in February. The reading was its lowest level since April 2013.
Meanwhile, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.21% at 0.7156 and with NZD/USD adding 0.20% to 0.6602.
In Australia, data earlier showed that building approvals for January dropped 7.5%, well below the expected a 2.0% fall month-on-month.
The current account deficit came in at A$21.1 billion, wider than the $20 billion seen for the fourth quarter.
Also Tuesday, the Reserve Bank of Australia held interest rates at a record low 2%, in a widely expected move.
USD/CAD fell 0.27% to 1.3504.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at a one-month high of 98.27.