Investing.com - The dollar remained broadly higher against a basket of other major currencies on Tuesday, after data showed that U.S. consumer confidence improved more than expected in June and as an almost certain default by Greece continued to support safe-haven demand.
The Conference Board reported on Tuesday that its index of consumer confidence rose to 101.4 this month from a reading of 94.6 in May, whose figure was revised from a previously reported 95.4. Analysts expected the index to rise to 97.3 in June.
EUR/USD dropped 0.44% to 1.1187 after Greece requested a new two-year bailout program, just hours ahead of a deadline for what looked to be an almost certain debt default by Athens.
The Greek government requested a new bailout from the European Stability Mechanism to cover the country’s financial need for the next two years, which would run alongside debt restructuring.
Greece’s existing bailout program officially expires at midnight and €1.6 billion loan repayment to the International Monetary Fund is due at the same time.
Without a rescue package in place Athens will almost certainly fall into arrears. Earlier in the day Greek Finance Minister Yanis Varoufakis said Athens would not make the deadline for the repayment.
Earlier Tuesday, data showed that the euro zone's consumer price inflation rose by 0.2% this month, meeting forecasts and following an increase of 0.3% in May.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by 0.8% in June, in line with expectations and down from 0.9% in May.
A separate report showed that the euro zone’s unemployment rate stood at 11.1% in May, the lowest level since March 2012, unchanged from April and in line with expectations.
The pound edged higher, with GBP/USD up 0.08% to 1.5748.
The U.K. Office for National Statistics said on Monday that gross domestic product expanded at a rate of 0.4% in the first quarter, up from a previous estimate of 0.3% and in line with expectations.
Annualized GDP grew at a rate of 2.9% in the first quarter, up from an initial forecast of 2.4% and beating expectations for a 2.5% increase.
A separate report showed that the U.K. current account recorded a deficit of £26.5 billion in the first quarter, narrowing from a revised deficit of £28.9 billion in the fourth quarter. Economists had expected the current account deficit to narrow to £23.8 billion in the first quarter.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.35% to 122.11 and higher against the Swiss franc, with USD/CHF gaining 0.555% to 0.9302.
The Australian dollar was higher, with AUD/USD up 0.34% to 0.7704, while NZD/USD tumbled 1.09% to fresh five-year lows of 0.6777.
Meanwhile, USD/CAD rose 0.46% to trade at 1.2461 after data on Tuesday showed that Canada's gross domestic product fell 0.1% in April, compared to expectations for a 0.1% rise, after a 0.2% decline the previous month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% at 95.34.