Investing.com - The U.S. dollar was broadly higher against its major counterparts on Tuesday, as the downgrade of six European countries by Moody’s rating agency weighed on demand for riskier assets.
During European morning trade, the dollar was higher against the euro, with EUR/USD retreating 0.16% to hit 1.3167.
Moody’s Investors Service cut the debt ratings of six European countries earlier, including Italy, Spain and Portugal, and said it may strip France and the U.K. of their top Aaa ratings, citing the euro zone’s debt crisis.
The news overshadowed the vote of a new austerity plan by the Greek parliament, designed to secure the country’s much needed EUR130 billion bailout package.
The greenback was also higher against the pound, with GBP/USD shedding 0.26% to hit 1.5723.
Official data showed earlier that consumer price inflation in the U.K. rose 3.6% in January, in line with expectations, after a 4.2% rise the previous month.
A separate report showed that retail prices rose less-than-expected in January, advancing 3.9% after a 4.8% increase the previous month.
Analysts had expected retail prices to rise 4.1% in January.
The greenback was higher against yen and the Swiss franc, with USD/JPY climbing 0.68% to hit 78.10 and USD/CHF rising 0.12% to hit 0.9177.
Earlier in the day, the Bank of Japan unexpectedly eased policy by adding JPY10 trillion to its asset-purchase program. The bank also set a 1% inflation target “for the time being” and stated that positive consumer-price growth would be defined as below 2% year-on-year.
Following the decision, Bank of Japan Governor Masaaki Shirakawa said that Japan's economy is headed towards a moderate recovery but the outlook remains highly uncertain.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.19% to hit 1.0016, AUD/USD falling 0.47% to hit 1.0680 and NZD/USD sliding 0.40% to hit 0.8305.
Industry data showed earlier that an index of business confidence for Australia rose to 4 in January from 3 the previous month.
In New Zealand, a report showed that house prices fell 1.4% in January after a 0.1% drop the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.30% to hit 79.32.
Later in the day, the U.S. was to release official data on retail sales, as well as reports on import prices and business inventories.
During European morning trade, the dollar was higher against the euro, with EUR/USD retreating 0.16% to hit 1.3167.
Moody’s Investors Service cut the debt ratings of six European countries earlier, including Italy, Spain and Portugal, and said it may strip France and the U.K. of their top Aaa ratings, citing the euro zone’s debt crisis.
The news overshadowed the vote of a new austerity plan by the Greek parliament, designed to secure the country’s much needed EUR130 billion bailout package.
The greenback was also higher against the pound, with GBP/USD shedding 0.26% to hit 1.5723.
Official data showed earlier that consumer price inflation in the U.K. rose 3.6% in January, in line with expectations, after a 4.2% rise the previous month.
A separate report showed that retail prices rose less-than-expected in January, advancing 3.9% after a 4.8% increase the previous month.
Analysts had expected retail prices to rise 4.1% in January.
The greenback was higher against yen and the Swiss franc, with USD/JPY climbing 0.68% to hit 78.10 and USD/CHF rising 0.12% to hit 0.9177.
Earlier in the day, the Bank of Japan unexpectedly eased policy by adding JPY10 trillion to its asset-purchase program. The bank also set a 1% inflation target “for the time being” and stated that positive consumer-price growth would be defined as below 2% year-on-year.
Following the decision, Bank of Japan Governor Masaaki Shirakawa said that Japan's economy is headed towards a moderate recovery but the outlook remains highly uncertain.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.19% to hit 1.0016, AUD/USD falling 0.47% to hit 1.0680 and NZD/USD sliding 0.40% to hit 0.8305.
Industry data showed earlier that an index of business confidence for Australia rose to 4 in January from 3 the previous month.
In New Zealand, a report showed that house prices fell 1.4% in January after a 0.1% drop the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.30% to hit 79.32.
Later in the day, the U.S. was to release official data on retail sales, as well as reports on import prices and business inventories.