Investing.com - The dollar rose against a basket of other major currencies on Tuesday, as ongoing uncertainty over the outcome of Greek debt talks continued to dampen risk sentiment, lending broad support to the safe-haven greenback.
The dollar strengthened after euro zone finance ministers failed to reach agreement over Greece’s bailout at an emergency meeting on Monday, but indicated that a final deal could be made later this week.
Eurogroup head Jeroen Dijsselbloem said new reform proposals from the Greek government were “broad and comprehensive,” and a good basis to restart stalled negotiations.
The greenback was also boosted after industry data on Monday showed that U.S. existing home sales increased 5.1% to 5.35 million units last month from 5.09 million in April. Analysts had expected existing home sales to rise 4.4% to 5.26 million units in May.
Investors were eyeing a report on U.S. durable goods orders due later in the day, for further indications on the strength of the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.78% at 95.26, the highest level since June 17.
EUR/USD tumbled 1.06% to 1.1223 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 0.27% to 1.5780.
Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.24% to 123.67 and with USD/CHF rallying 1.13% to 0.9318.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.11% to 0.7717 and with NZD/USD sliding 0.31% to 0.6842.
Meanwhile, USD/CAD rose 0.26% to trade at 1.2340.