Investing.com - The dollar fell against most major currencies on Tuesday after investors looked past weak German business sentiment data that sparked a risk-off trading session in U.S. and European session earlier.
The dollar rose on news that German businesses are less confident in their economy, though profit-taking sent the greenback down by Tuesday.
In Asian trading on Tuesday, EUR/USD was up 0.08% at 1.2941.
The greenback rose earlier after the Ifo institute said its business climate index for Germany fell to its lowest level since March 2010, stoking concerns that the European debt crisis is fraying nerves in Europe's largest economy.
The Ifo index fell to 101.4 in September from 102.3 in August, the fifth consecutive monthly decline and well below expectations for a 102.5 reading.
Ongoing uncertainty as to whether Spain will seek a bailout prompted investors to seek safety in the liquid greenback as well.
On Thursday Madrid will unveil a draft budget for next year and announce structural reforms, while the results of the country's bank stress tests are due on Friday.
Elsewhere, the Moody’s ratings agency should wrap up a ratings review on Spain later this week.
Spain’s economy minister said the country would not rush to seek external financial aid, though press reports have said the country is quietly drawing up blueprints to formally seek assistance.
Bottom fishing, however, sent the higher-yielding currencies tracking the euro and rising against the dollar in early Asian trading on Tuesday.
The U.S. Federal Reserve is currently running a third round of quantitative easing, a monetary stimulus tool that will see the U.S. central bank buy USD40 billion in mortgage-backed securities a month on an open-ended basis to spur recovery.
Such policy tools weaken the greenback.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.06% at 1.6227.
The dollar was flat against the yen, with USD/JPY trading unchanged at 77.85, and down against the Swiss franc, with USD/CHF trading down 0.10% at 0.9349.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.02% at 0.9786, AUD/USD up 0.03% at 1.0428 and NZD/USD trading down 0.06% at 0.8224.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.06% at 79.54.
Later Tuesday, the U.S. will release data on consumer confidence as well as industry data on housing prices.
The dollar rose on news that German businesses are less confident in their economy, though profit-taking sent the greenback down by Tuesday.
In Asian trading on Tuesday, EUR/USD was up 0.08% at 1.2941.
The greenback rose earlier after the Ifo institute said its business climate index for Germany fell to its lowest level since March 2010, stoking concerns that the European debt crisis is fraying nerves in Europe's largest economy.
The Ifo index fell to 101.4 in September from 102.3 in August, the fifth consecutive monthly decline and well below expectations for a 102.5 reading.
Ongoing uncertainty as to whether Spain will seek a bailout prompted investors to seek safety in the liquid greenback as well.
On Thursday Madrid will unveil a draft budget for next year and announce structural reforms, while the results of the country's bank stress tests are due on Friday.
Elsewhere, the Moody’s ratings agency should wrap up a ratings review on Spain later this week.
Spain’s economy minister said the country would not rush to seek external financial aid, though press reports have said the country is quietly drawing up blueprints to formally seek assistance.
Bottom fishing, however, sent the higher-yielding currencies tracking the euro and rising against the dollar in early Asian trading on Tuesday.
The U.S. Federal Reserve is currently running a third round of quantitative easing, a monetary stimulus tool that will see the U.S. central bank buy USD40 billion in mortgage-backed securities a month on an open-ended basis to spur recovery.
Such policy tools weaken the greenback.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.06% at 1.6227.
The dollar was flat against the yen, with USD/JPY trading unchanged at 77.85, and down against the Swiss franc, with USD/CHF trading down 0.10% at 0.9349.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.02% at 0.9786, AUD/USD up 0.03% at 1.0428 and NZD/USD trading down 0.06% at 0.8224.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.06% at 79.54.
Later Tuesday, the U.S. will release data on consumer confidence as well as industry data on housing prices.