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Dollar little changed vs. rivals ahead of U.S. data

Published 02/23/2016, 08:15 AM
© Reuters.  Dollar holds steady vs. other majors as markets eye U.S. reports
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Investing.com - The dollar was little changed against the other major currencies on Tuesday, as oil prices continued to decline after rallying sharply on Monday and as investors eyed the release of U.S. economic reports later in the day.

USD/JPY declined 0.90% to 111.89.

Oil prices began to decline once more on Tuesday as concerns over rising Iranian production following the end of international sanctions resurfaced.

Separately, OPEC Secretary General Abdalla Salem El-Badri said on Monday that oil producers are still "feeling the water" over a possible deal to freeze production.

Investors were eyeing the release of consumer confidence and home sales data due later in the day, for further indications on the strength of the economy after strong U.S. inflation data on Friday added to expectations for additional rate hikes by the Federal Reserve this year.

EUR/USD slipped 0.17% to 1.1012.

Earlier Tuesday, data showed that the German Ifo Business Climate Index fell to a a 14-month low of 105.7 in February from a reading of 107.3 in January, below forecasts for 106.7.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.29% at 1.4109, not far from Monday’s three-year low of 1.4057, and was lower against the Swiss franc, with USD/CHF retreating 0.77% to 0.9920.

Sterling remained under pressure amid ongoing discussions over a posssible British exit from the European Union.

In the Bank of England’s Inflation Report hearings on Tuesday, BoE governor Mark Carney said that the central bank would treat the Brexit like any other political event.

Meanwhile, Swiss National Bank Thomas Jordan warned it could not take “endless” steps to ease monetary policy.

Jordan also noted that central bankers must continuously assess the effects of their monetary policies, which can weaken over time.

The remarks were seen as an indication that the SNB would refrain from making further cuts to interest rates.

Meanwhile, the Australian dollar was stronger, with AUD/USD up 0.30% at 0.7249, while NZD/USD held steady at 0.6696.

USD/CAD added 0.16% to trade at 1.3730.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 97.36, still close to the previous session’s two-and-a-half week high of 97.61.

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