Investing.com - The dollar was broadly lower against the other major currencies on Tuesday, as concerns over the economic impact of a U.S. government shutdown weighed on investor demand for the greenback.
During European afternoon trade, the dollar was close to session lows against the yen, with USD/JPY down 0.43% to 97.79.
The dollar came under pressure after the U.S. government went into a partial shutdown after Congress failed to reach a deal on a budget for the new fiscal year.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Elsewhere, the euro was hovering close to seven-month highs against the dollar, with EUR/USD up 0.22% to 1.3554.
In the euro zone, data released on Tuesday showed that the final reading of the bloc’s manufacturing purchasing managers’ index came in at 51.1 in September, unchanged from the preliminary estimate, but below August’s 26-month high of 51.4.
Separately, Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
The dollar fell to eight-month lows against the pound, with GBP/USD advancing 0.37% to 1.6244.
Sterling briefly dipped lower after data on Tuesday showed that manufacturing activity in the U.K. slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI declined to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
The dollar was trading within striking distance of 19-month lows against the Swiss franc, with USD/CHF down 0.19% to 0.9038.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD rallying 1.02% to 0.9417, NZD/USD slipping 0.22% to 0.8283 and USD/CAD dipping 0.06% to 1.0302.
The Australian dollar jumped after the Reserve Bank of Australia left interest rates on hold at 2.5% on Tuesday and said the full effect of previous rate cuts were still coming through.
The RBA added that a weaker Australian dollar “would assist in rebalancing growth in the economy.”
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.30% to an eight-month low of 80.09.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.
During European afternoon trade, the dollar was close to session lows against the yen, with USD/JPY down 0.43% to 97.79.
The dollar came under pressure after the U.S. government went into a partial shutdown after Congress failed to reach a deal on a budget for the new fiscal year.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Elsewhere, the euro was hovering close to seven-month highs against the dollar, with EUR/USD up 0.22% to 1.3554.
In the euro zone, data released on Tuesday showed that the final reading of the bloc’s manufacturing purchasing managers’ index came in at 51.1 in September, unchanged from the preliminary estimate, but below August’s 26-month high of 51.4.
Separately, Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
The dollar fell to eight-month lows against the pound, with GBP/USD advancing 0.37% to 1.6244.
Sterling briefly dipped lower after data on Tuesday showed that manufacturing activity in the U.K. slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI declined to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
The dollar was trading within striking distance of 19-month lows against the Swiss franc, with USD/CHF down 0.19% to 0.9038.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD rallying 1.02% to 0.9417, NZD/USD slipping 0.22% to 0.8283 and USD/CAD dipping 0.06% to 1.0302.
The Australian dollar jumped after the Reserve Bank of Australia left interest rates on hold at 2.5% on Tuesday and said the full effect of previous rate cuts were still coming through.
The RBA added that a weaker Australian dollar “would assist in rebalancing growth in the economy.”
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.30% to an eight-month low of 80.09.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.