Investing.com - The dollar slipped lower against the other major currencies on Tuesday, as concerns over global economic growth continued to dominate market sentiment.
USD/JPY dropped 0.41% to a more than one-year low of 115.38.
The yen strengthened as Japan’s Nikkei closed down 5.4% overnight, the largest drop in three years amid mounting fears over the health of the global economy and the financial sector.
Concerns over the health of European banks prompted investors to sell financial stocks on Monday, sparking a rout in European and U.S. markets.
Trade volumes were expected to remain thin in Asia with markets in China closed for the five-day long Lunar New Year holiday.
EUR/USD eased up 0.10% to trade at 1.1204.
Data earlier showed that German industrial output unexpectedly fell 1.2% in December, indicating that the region’s largest economy ended 2015 on a weak footing.
Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.29% at 1.4474 and with USD/CHF down 0.64% to 0.9807.
The U.K. Office for National Statistics said on Tuesday that the total trade deficit widened to £10.3 billion in the fourth quarter from £8.5 billion pounds in the previous quarter, marking the biggest trade gap since the start of 2015.
The annual trade deficit widened to £34.7 billion in 2015, up from £0.3 billion in 2014.
Meanwhile, USD/CAD declined 0.51% to 1.3855.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.54% at 0.7049 and with NZD/USD shedding 0.20% to 0.6614.
The National Australia Bank earlier reported that its business confidence index ticked down to 2 in January from 3 the previous month, in line with expectations.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.24% at 96.53.