Investing.com - The U.S. dollar remained broadly higher against most of its major counterparts on Tuesday, as risk appetite was dented by renewed concerns over a setback in talks aimed at restructuring Greece’s debt.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.26% to hit 1.2977.
On Monday, euro zone finance ministers said Greece’s creditors would have to accept lower interest rates on new bonds to be issued to replace their existing holdings as part of the debt restructuring deal.
The euro weakened after ratings agency Standard & Poor’s said it was likely to put Greece into "selective default" once negotiations on the restructuring deal have concluded.
The single currency briefly rose to an almost three-week high against the greenback earlier after data showed that manufacturing activity in the single currency bloc rose at the fastest pace since August this month, while service sector activity accelerated to a five-month high.
A separate report showed that industrial new orders in the euro zone declined in November, albeit at a slower pace than expected.
The greenback was slightly lower against the pound, with GBP/USD easing up 0.09% to hit 1.5582.
Sterling’s gains were capped amid ongoing speculation that the Bank of England may implement fresh easing measures to shore up the economy as the effects of harsh government austerity cuts and the debt crisis in Europe continue to create a drag on growth.
Earlier Tuesday, official data showed that U.K. public sector net borrowing rose less-than-expected in December, but total outstanding debt rose above GBP1 trillion for the first time on record.
The greenback was sharply higher against the yen and also advanced against the Swiss franc, with USD/JPY jumping 1.01% to hit 77.79 and USD/CHF advancing 0.25% to hit 0.9299.
The Bank of Japan left interest rates unchanged earlier and revised down its outlook for growth in this fiscal year and the next, citing the ongoing financial crisis in Europe as a key downside risk to the global economy.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.41% to hit 1.0126, AUD/USD falling 0.70% to hit 1.0448 and NZD/USD shedding 0.37% to hit 0.8068.
In Canada, official data showed that core retail sales rose more-than-expected in November, ticking up 0.3% after a 0.6% rise the previous month. Analysts had expected core retail sales to rise 0.2% in November.
Retail sales rose 0.3% in November, in line with expectations.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.43% to hit 80.22.
Elsewhere Tuesday, Spain auctioned EUR2.51 billion of short-term government debt, in an auction which met with robust investor demand at sharply lower yields.
The auction came one day after the Bank of Spain said it expects the economy to contract by 1.5% this year and grow just 0.2% in 2013.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.26% to hit 1.2977.
On Monday, euro zone finance ministers said Greece’s creditors would have to accept lower interest rates on new bonds to be issued to replace their existing holdings as part of the debt restructuring deal.
The euro weakened after ratings agency Standard & Poor’s said it was likely to put Greece into "selective default" once negotiations on the restructuring deal have concluded.
The single currency briefly rose to an almost three-week high against the greenback earlier after data showed that manufacturing activity in the single currency bloc rose at the fastest pace since August this month, while service sector activity accelerated to a five-month high.
A separate report showed that industrial new orders in the euro zone declined in November, albeit at a slower pace than expected.
The greenback was slightly lower against the pound, with GBP/USD easing up 0.09% to hit 1.5582.
Sterling’s gains were capped amid ongoing speculation that the Bank of England may implement fresh easing measures to shore up the economy as the effects of harsh government austerity cuts and the debt crisis in Europe continue to create a drag on growth.
Earlier Tuesday, official data showed that U.K. public sector net borrowing rose less-than-expected in December, but total outstanding debt rose above GBP1 trillion for the first time on record.
The greenback was sharply higher against the yen and also advanced against the Swiss franc, with USD/JPY jumping 1.01% to hit 77.79 and USD/CHF advancing 0.25% to hit 0.9299.
The Bank of Japan left interest rates unchanged earlier and revised down its outlook for growth in this fiscal year and the next, citing the ongoing financial crisis in Europe as a key downside risk to the global economy.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.41% to hit 1.0126, AUD/USD falling 0.70% to hit 1.0448 and NZD/USD shedding 0.37% to hit 0.8068.
In Canada, official data showed that core retail sales rose more-than-expected in November, ticking up 0.3% after a 0.6% rise the previous month. Analysts had expected core retail sales to rise 0.2% in November.
Retail sales rose 0.3% in November, in line with expectations.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.43% to hit 80.22.
Elsewhere Tuesday, Spain auctioned EUR2.51 billion of short-term government debt, in an auction which met with robust investor demand at sharply lower yields.
The auction came one day after the Bank of Spain said it expects the economy to contract by 1.5% this year and grow just 0.2% in 2013.