Investing.com - The dollar was mixed against the other major currencies in subdued holiday trade on Tuesday, as market sentiment improved ahead of the year end although demand for the greenback remained supported.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
During European morning trade, EUR/USD slipped 0.23% to 1.3768.
The dollar remained supported amid expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
The single currency had gained some ground on Friday, after European Central Bank Governing Council member Jens Weidmann said keeping interest rates low may endanger political reforms.
According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. "We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly added.
Separately, ECB President Mario Draghi said he sees no urgent need to cut the euro zone's main interest rate further and sees no signs of deflation.
The pound was higher against the dollar, with GBP/USD up 0.25% to 1.6539.
Elsewhere, the greenback slipped lower against the yen, still trading near five-year highs, with USD/JPY down 0.17% to 104.97 and was higher against the Swiss franc, with USD/CHF up 0.34% to 0.8906.
The greenback was steady to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD up 0.13% to 0.8918, NZD/USD adding 0.10% to 0.8213 and USD/CAD up 0.01% to 1.0648.
In a report, the Reserve Bank of Australia earlier said that private sector credit rose 0.3% in November, less than the expected 0.4% increase, after a 0.3% gain the previous month.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% to 80.21.
Later in the day, the U.S. was to produce private sector data on consumer confidence and house price inflation, as well as a report on manufacturing activity in the Chicago region.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
During European morning trade, EUR/USD slipped 0.23% to 1.3768.
The dollar remained supported amid expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
The single currency had gained some ground on Friday, after European Central Bank Governing Council member Jens Weidmann said keeping interest rates low may endanger political reforms.
According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. "We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly added.
Separately, ECB President Mario Draghi said he sees no urgent need to cut the euro zone's main interest rate further and sees no signs of deflation.
The pound was higher against the dollar, with GBP/USD up 0.25% to 1.6539.
Elsewhere, the greenback slipped lower against the yen, still trading near five-year highs, with USD/JPY down 0.17% to 104.97 and was higher against the Swiss franc, with USD/CHF up 0.34% to 0.8906.
The greenback was steady to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD up 0.13% to 0.8918, NZD/USD adding 0.10% to 0.8213 and USD/CAD up 0.01% to 1.0648.
In a report, the Reserve Bank of Australia earlier said that private sector credit rose 0.3% in November, less than the expected 0.4% increase, after a 0.3% gain the previous month.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% to 80.21.
Later in the day, the U.S. was to produce private sector data on consumer confidence and house price inflation, as well as a report on manufacturing activity in the Chicago region.