Investing.com - The dollar remained broadly higher against a basket of other major currencies on Tuesday, after the release of mixed U.S. economic reports, as ongoing uncertainty over the outcome of Greek debt talks continued to weigh on market sentiment.
The U.S. Commerce Department reported on Tuesday that new home sales jumped by 2.2% to 546,000 units last month, the highest level since February 2008, compared to expectations for a gain of 1.5% to 525,000.
A separate report showed that total U.S. durable goods orders, which include transportation items, declined by 1.8% last month, worse than expectations for a drop of 0.6%.
Core durable goods orders, excluding volatile transportation items, inched up by 0.5% in May, missing forecasts for an increase of 0.6%.
The dollar remained broadly supported as euro zone finance ministers failed to reach agreement over Greece’s bailout at an emergency meeting on Monday.
Fresh talks were scheduled on Thursday, leaving just 48 hours for a detailed agreement to be finalized.
The new reform proposals from the Greek government prompted sharp criticism at home on Tuesday, with government and opposition MPs criticizing the plan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 1.02% at 95.48, the highest level since June 12.
EUR/USD tumbled 1.31% to two-week lows of 1.1192 as the single currency shrugged off data on Tuesday showing that private sector activity in the euro area expanded at the fastest pace in four years this month, cementing the view that the economic recovery is gaining traction.
The preliminary reading of the Markit composite purchasing managers' index, which looks at both the manufacturing and service sectors, rose to 54.1 from a final reading of 53.6 in May. It was the highest level since May 2011 and above forecasts for a reading of 53.5.
The bloc’s manufacturing PMI rose to 52.5 this month from 52.2 in May, while the services PMI improved to 54.4 this month from 53.8.
France’s manufacturing sector expanded for the first time since April 2014 this month, as a broad based pick up in private business activity gained momentum. German private sector activity also expanded at a faster-than-expected pace.
The pound was also lower, with GBP/USD down 0.52% to 1.5742.
Elsewhere, the dollar pushed higher against the yen and the Swiss franc, with USD/JPY up 0.35% to 123.81 and with USD/CHF rallying 1.35% to 0.9338.
The Australian dollar was steady, with AUD/USD at 0.7728, while NZD/USD slipped 0.17% to 0.6852.
Meanwhile, USD/CAD eased up 0.07% to trade at 1.2318.