Investing.com - The U.S. dollar moved higher against its major counterparts in Asian trade Tuesday, as a rise in Wall Street shares coupled with an uncertain future make-up for European governments combined to whet investor appetites for the greenback.
In mid-day Asian trade, the greenback was higher against the euro, with EUR/USD falling 0.10% to hit 1.3761.
Over the weekend, Greek Prime Minister George Papandreou agreed to resign, leaving the door open for the creation of a new government that could better secure international funds and avoid default on the country’s debt.
On Monday, Greece’s Finance Minister Evangelos Venizelos held talks with European Union Economic and Monetary Affairs Commissioner Olli Rehn to negotiate payment of Greece’s next tranche of financial aid.
European finance officials met in Brussels on plans to expand the European Financial Stability Facility, the rescue fund for debt-threatened euro-zone members.
Meanwhile, rumors continued to circulate that Italian Prime Minister Silvio Berlusconi would be the next European leader to step down, as 10-year Italian bonds surged to their highest level since the launch of the single-currency euro.
Berlusconi dismissed reports of his looming resignation despite heavy pressure from within his own political party ahead of a key parliamentary vote later Tuesday.
Wall Street dealers took a generally positive view of events in Europe, with the Dow Jones Industrial Average gaining 0.71% to 12,068.40, the Nasdaq Composite Index added 0.34% to 2,695.25, and the S&P 500 rose 0.63% to close at 1,261.12.
Meanwhile, the greenback was higher against the British pound, with GBP/USD losing 0.02% to hit 1.6053.
The dollar was higher against both the Japanese yen and the Swiss franc with USD/JPY up 0.02% to hit 78.05, and USD/CHF higher by 0.40% to hit 0.9042.
The greenback was higher against its Canadian, Australian and New Zealand counterparts with USD/CAD up 0.10% to hit 1.0136, AUD/USD lower by 0.30% to hit 1.0346, and NZD/USD falling 0.32% to hit 0.7943.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 77.19.
The U.S. Investor’s Business Daily TechnoMetrica Institute of Policy and Politics was due to release its latest Economic Optimism Index later Tuesday.