Investing.com - The dollar was trading in a narrow range against the euro and the yen on Tuesday amid doubts over how long the Federal Reserve will keep its easy money policies in place.
During European afternoon trade, EUR/USD edged up 0.03% to 1.3508, little changed from Monday’s close of 1.3504.
The dollar remained under pressure after dovish comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
The single currency shrugged off a report showing that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.
USD/JPY dipped 0.04% to 99.94, holding below the two-month highs of 100.42 struck on Friday.
Market sentiment was hit after the Organization for Economic Co-operation and Development cut global growth forecasts on Tuesday.
OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May, warning that the outlook for emerging markets is deteriorating.
The dollar was almost unchanged against the pound and the Swiss franc, with GBP/USD edging up 0.07% to 1.6120 and USD/CHF inching down 0.07% to 0.9122.
The greenback was mixed to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.50% to 0.9422, NZD/USD rising 0.14% to 0.8345 and USD/CAD edging up 0.02% to 1.0428.
Demand for the Aussie was underpinned after broad economic reforms outlined by the Chinese government bolstered the outlook for Australian commodity exports.
Earlier Tuesday, the minutes of the Reserve Bank of Australia’s November meeting said the exchange rate remained “uncomfortably high” and indicated that further rate cuts are possible.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.06% to 80.73.
During European afternoon trade, EUR/USD edged up 0.03% to 1.3508, little changed from Monday’s close of 1.3504.
The dollar remained under pressure after dovish comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
The single currency shrugged off a report showing that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.
USD/JPY dipped 0.04% to 99.94, holding below the two-month highs of 100.42 struck on Friday.
Market sentiment was hit after the Organization for Economic Co-operation and Development cut global growth forecasts on Tuesday.
OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May, warning that the outlook for emerging markets is deteriorating.
The dollar was almost unchanged against the pound and the Swiss franc, with GBP/USD edging up 0.07% to 1.6120 and USD/CHF inching down 0.07% to 0.9122.
The greenback was mixed to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.50% to 0.9422, NZD/USD rising 0.14% to 0.8345 and USD/CAD edging up 0.02% to 1.0428.
Demand for the Aussie was underpinned after broad economic reforms outlined by the Chinese government bolstered the outlook for Australian commodity exports.
Earlier Tuesday, the minutes of the Reserve Bank of Australia’s November meeting said the exchange rate remained “uncomfortably high” and indicated that further rate cuts are possible.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.06% to 80.73.