Investing.com - The U.S. dollar extended losses against its major counterparts on Tuesday, as market sentiment was boosted after unexpectedly strong German data and a well received auction of Spanish government debt.
During European afternoon trade, the dollar was down against the euro, with EUR/USD rising 0.56% to hit 1.3071.
German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 107.2 in December from 106.6 the previous month, confounding expectations for a decline to 106.0.
Elsewhere, Spain saw short-term borrowing costs fall sharply as the country’s Treasury sold more than the targeted amount of EUR4.5 billion in an action of three and six-month government bonds earlier.
But the euro’s gains were limited after European Central Bank President Mario Draghi reiterated Monday that the bank’s bond purchasing program was temporary and warned the region’s economy was likely to enter a recession by early next year.
European Union finance ministers agreed Monday to provide EUR150 billion in loans to the International Monetary Fund to help tackle the region's debt crisis, but fell short of the overall EUR200 billion target.
The greenback was also down against the pound, with GBP/USD surging 0.87% to hit 1.5633.
Earlier in the day, a report by the Confederation of British Industry said retail sales unexpectedly rose at the fastest rate in seven months in December, but warned that sales were expected to fall sharply again after Christmas.
The greenback was weaker against the yen and the Swiss franc, with USD/JPY shedding 0.17% to hit 77.9 and USD/CHF shedding 0.59% to hit 0.9316.
In Switzerland, official data showed that the trade surplus widened more-than-expected in November, as exports rose 3.8% year-on-year to CHF17.75 billion. The overall trade surplus was CHF3.00 billion.
In addition, the greenback was lower against its Canadian, Australian and New Zealand cousins, with USD/CAD down 0.59% to hit 1.0324, AUD/USD rallying 0.97% to hit 0.9993 and NZD/USD jumping 0.96% to hit 0.7628.
The Canadian dollar shrugged off government data showing that consumer prices rose less-than-expected in November.
Statistics Canada said consumer price inflation rose 0.1% last month, below expectations for a 0.3% gain, bringing the annualized rate of CPI to 2.9%. The core inflation rate rose 2.1% in November on the year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.62% to hit 80.44.
Later Tuesday, the U.S. was to publish official data on building permits as well as a report on housing starts.
During European afternoon trade, the dollar was down against the euro, with EUR/USD rising 0.56% to hit 1.3071.
German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 107.2 in December from 106.6 the previous month, confounding expectations for a decline to 106.0.
Elsewhere, Spain saw short-term borrowing costs fall sharply as the country’s Treasury sold more than the targeted amount of EUR4.5 billion in an action of three and six-month government bonds earlier.
But the euro’s gains were limited after European Central Bank President Mario Draghi reiterated Monday that the bank’s bond purchasing program was temporary and warned the region’s economy was likely to enter a recession by early next year.
European Union finance ministers agreed Monday to provide EUR150 billion in loans to the International Monetary Fund to help tackle the region's debt crisis, but fell short of the overall EUR200 billion target.
The greenback was also down against the pound, with GBP/USD surging 0.87% to hit 1.5633.
Earlier in the day, a report by the Confederation of British Industry said retail sales unexpectedly rose at the fastest rate in seven months in December, but warned that sales were expected to fall sharply again after Christmas.
The greenback was weaker against the yen and the Swiss franc, with USD/JPY shedding 0.17% to hit 77.9 and USD/CHF shedding 0.59% to hit 0.9316.
In Switzerland, official data showed that the trade surplus widened more-than-expected in November, as exports rose 3.8% year-on-year to CHF17.75 billion. The overall trade surplus was CHF3.00 billion.
In addition, the greenback was lower against its Canadian, Australian and New Zealand cousins, with USD/CAD down 0.59% to hit 1.0324, AUD/USD rallying 0.97% to hit 0.9993 and NZD/USD jumping 0.96% to hit 0.7628.
The Canadian dollar shrugged off government data showing that consumer prices rose less-than-expected in November.
Statistics Canada said consumer price inflation rose 0.1% last month, below expectations for a 0.3% gain, bringing the annualized rate of CPI to 2.9%. The core inflation rate rose 2.1% in November on the year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.62% to hit 80.44.
Later Tuesday, the U.S. was to publish official data on building permits as well as a report on housing starts.