Investing.com - The dollar moved lower against the euro on Tuesday, but edged higher against the yen amid ongoing uncertainty over how soon the Federal Reserve may start to scale back its stimulus program.
During U.S. morning trade, EUR/USD was up 0.16% to 1.3527 from Monday’s close of 1.3504.
The dollar remained under pressure on the view that the Fed will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
But this view was tempered after Fed Bank of New York President William Dudley said Monday he was growing more hopeful that the economy is improving.
Investors were looking to the minutes of the Fed’s October meeting on Wednesday, as well as a speech by Fed Chairman Ben Bernanke for further indications on the future course of U.S. monetary policy.
In the euro zone, data released on Tuesday showed 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 rose 0.16% to 99.15, 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 little changed against the pound and the Swiss franc, with GBP/USD dipping 0.05% to 1.6101 and USD/CHF inching down 0.08% to 0.9119.
The greenback was mixed to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.51% to 0.9422, NZD/USD rising 0.20% to 0.8350 and USD/CAD edging up 0.12% to 1.0441.
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 0.07% to 80.74.
During U.S. morning trade, EUR/USD was up 0.16% to 1.3527 from Monday’s close of 1.3504.
The dollar remained under pressure on the view that the Fed will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
But this view was tempered after Fed Bank of New York President William Dudley said Monday he was growing more hopeful that the economy is improving.
Investors were looking to the minutes of the Fed’s October meeting on Wednesday, as well as a speech by Fed Chairman Ben Bernanke for further indications on the future course of U.S. monetary policy.
In the euro zone, data released on Tuesday showed 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 rose 0.16% to 99.15, 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 little changed against the pound and the Swiss franc, with GBP/USD dipping 0.05% to 1.6101 and USD/CHF inching down 0.08% to 0.9119.
The greenback was mixed to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.51% to 0.9422, NZD/USD rising 0.20% to 0.8350 and USD/CAD edging up 0.12% to 1.0441.
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 0.07% to 80.74.