Investing.com - The dollar trimmed gains against the other major currencies on Tuesday, but it remained supported as investors were cautious after a series of explosions in Brussels killed at least a 26 people and injured over 100.
USD/JPY slid 0.30% to 111.60.
Safe-haven demand strengthened after at least 26 people were killed in a series of explosions in Brussels on Tuesday morning, with two blasts at the airport and another at a metro station in the heart of the EU quarter an hour later.
EUR/USD edged down 0.10% to trade at 1.1231.
The euro regained some ground after the ZEW Centre for Economic Research said that its index of German economic sentiment rose to 4.3 this month from February’s reading of 1.0. Analysts had expected the index to rise to 5.0 in March.
However, the index of euro zone economic sentiment dropped to a 15-month low of 10.6 in March from 13.6 a month earlier, settling above forecasts for a reading of 8.2.
Separately, the German research institute Ifo said its Business Climate Index rose to 106.7 this month from a reading of 105.7 in February, above forecasts for 106.0.
Meanwhile, research group Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 53.0 in February to 53.7 in March, above forecasts for 53.0.
Markit earlier said that its German manufacturing PMI ticked down to 50.4 in March from 50.5 the previous month, while the services PMI rose to 55.5 this month from 55.3 in February.
In France, the manufacturing PMI fell to 49.6 in March from 50.2 the previous month, while the services PMI rose to 51.2 from 49.2.
The dollar was higher against the pound, with GBP/USD down 0.72% at 1.4265 and slipped lower against the Swiss franc, with USD/CHF easing 0.09% to 0.9690.
The U.K. Office for National Statistics reported on Tuesday that the rate of consumer price inflation rose by 0.3% last month, below forecasts for an increase of 0.4%. Month-over-month, consumer prices edged up 0.2% in February.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by 1.2% last month, in line with forecasts and unchanged from January.
A separate report showed that public sector net borrowing in the U.K. rose by £6.49 billion in February, disappointing expectations for an increase of £5.25 billion.
Meanwhile, the Australian dollar was stronger, with AUD/USD rising 0.26% to 0.7599, while NZD/USD slipped 0.25% to 0.6743.
Earlier Tuesday, Reserve Bank of Australia Governor Glenn Stevens said in a speech that Australia's economy was "adjusting quite well" to lower commodity prices and had more fiscal and policy scope to respond to a global downturn than most countries.
USD/CAD held steady at 1.3099.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 95.50, after rising to 95.73 earlier in the session.