Investing.com - The dollar was trading in a tight range against the other major currencies on Tuesday as uncertainty over U.S. monetary policy continued to weigh on investor sentiment.
During U.S. morning trade, the dollar was lower against the yen, with USD/JPY down 0.24% to 98.61.
Concerns over the future direction of U.S. monetary policy mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Elsewhere, the euro drifted lower against the dollar, with EUR/USD dipping 0.05% to 1.3486.
The euro slipped after a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
The dollar pushed higher against the pound with GBP/USD sliding 0.32% to 1.5991 and was little changed against the Swiss franc, with USD/CHF edging up 0.03% to 0.9110.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.46% to 0.9387, NZD/USD dropping 1.25% to 0.8269 and USD/CAD EASING UP 0.13% to 1.0297.
The Australian and New Zealand dollars fell as declines in global equities markets curbed investor demand for riskier assets.
In Canada, data on Tuesday showed that retail sales were 0.6% higher in July, missing forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.05% to 80.63.
The dollar showed little reaction after data released on Tuesday showed that the Conference Board’s index of U.S. consumer confidence ticked down to 79.7 in September from 81.8 in August. Economists had forecast a dip to 79.9.
During U.S. morning trade, the dollar was lower against the yen, with USD/JPY down 0.24% to 98.61.
Concerns over the future direction of U.S. monetary policy mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Elsewhere, the euro drifted lower against the dollar, with EUR/USD dipping 0.05% to 1.3486.
The euro slipped after a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
The dollar pushed higher against the pound with GBP/USD sliding 0.32% to 1.5991 and was little changed against the Swiss franc, with USD/CHF edging up 0.03% to 0.9110.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.46% to 0.9387, NZD/USD dropping 1.25% to 0.8269 and USD/CAD EASING UP 0.13% to 1.0297.
The Australian and New Zealand dollars fell as declines in global equities markets curbed investor demand for riskier assets.
In Canada, data on Tuesday showed that retail sales were 0.6% higher in July, missing forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.05% to 80.63.
The dollar showed little reaction after data released on Tuesday showed that the Conference Board’s index of U.S. consumer confidence ticked down to 79.7 in September from 81.8 in August. Economists had forecast a dip to 79.9.