Investing.com - The dollar fell to two-month lows against the euro and the pound on Tuesday and was weaker against the yen, amid ongoing speculation over the timing of possible tapering by the Federal Reserve.
During European afternoon trade, the dollar was down against the yen, with USD/JPY losing 0.27% to trade at 97.30.
Demand for the safe haven yen was boosted as expectations that the Fed may start to unwind its asset purchase program as soon as next month sparked weakness in global equities markets.
Investors were looking to the minutes of the Fed’s July meeting on Wednesday for further indications as to when the central bank may start to taper stimulus. Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Elsewhere, the dollar fell to two-month lows against the euro, with EUR/USD advancing 0.70% to 1.3428.
The euro remained supported after data last week showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The dollar also fell to two-month lows against the pound, with GBP/USD rising 0.23% to 1.5684.
The dollar moved lower against the Swiss franc, with USD/CHF shedding 0.77% to trade at 0.9170.
In contrast, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.44% to 0.9073, NZD/USD dropping 1.02% to 0.7985 and USD/CAD climbing 0.43% to 1.0389.
The Australian dollar weakened after the minutes of the Reserve Bank of Australia’s August meeting indicated that further rate cuts remain possible in the future.
Meanwhile, the New Zealand dollar fell sharply after Reserve Bank of New Zealand Governor Graeme Wheeler called the currency "overvalued".
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.47% to 80.91.
During European afternoon trade, the dollar was down against the yen, with USD/JPY losing 0.27% to trade at 97.30.
Demand for the safe haven yen was boosted as expectations that the Fed may start to unwind its asset purchase program as soon as next month sparked weakness in global equities markets.
Investors were looking to the minutes of the Fed’s July meeting on Wednesday for further indications as to when the central bank may start to taper stimulus. Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Elsewhere, the dollar fell to two-month lows against the euro, with EUR/USD advancing 0.70% to 1.3428.
The euro remained supported after data last week showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The dollar also fell to two-month lows against the pound, with GBP/USD rising 0.23% to 1.5684.
The dollar moved lower against the Swiss franc, with USD/CHF shedding 0.77% to trade at 0.9170.
In contrast, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.44% to 0.9073, NZD/USD dropping 1.02% to 0.7985 and USD/CAD climbing 0.43% to 1.0389.
The Australian dollar weakened after the minutes of the Reserve Bank of Australia’s August meeting indicated that further rate cuts remain possible in the future.
Meanwhile, the New Zealand dollar fell sharply after Reserve Bank of New Zealand Governor Graeme Wheeler called the currency "overvalued".
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.47% to 80.91.