Investing.com - The dollar strengthened against most major currencies on Tuesday after weekend elections in Europe continued to signal a brewing power shift favoring candidates seeking to ditch austerity and prioritizing growth over spending cuts.
The euro was lower against the dollar in Asian trading on Tuesday, with EUR/USD down 0.11% and trading at 1.3036.
Election results in France and Greece over the weekend sent investors running for cover in the U.S. dollar, a traditionally safe-haven currency.
In France, socialist Francois Hollande beat out President Nicolas Sarkozy, as voters rejected harsh austerity measures supported by the outgoing administration and opted to embrace Hollande's calls to prioritize growth over cutting spending.
In Greece, the country's leading political parties failed to secure 50 percent of the votes in parliamentary elections, with far-left and far-right fringe parties eating away at the establishment's hold on power and casting the country's leadership structure in doubt.
Greek election results especially roiled markets worldwide.
Fears grew after the elections that any policy shifts in Athens could lead to a rejection of austerity measures demanded by the International Monetary Fund, the European Commission and the European Central Bank in exchange for bailout assistance.
Such a move could involve Athens abandoning the euro down the road, which could shock markets and threaten Europe's recovery.
However, the greenback spent early Asian trading still reeling from Friday's jobs report in the U.S., with the Bureau of Labor Statistics reporting that the country added a net 115,000 jobs in April, far lower than expected.
The greenback, meanwhile, was up against the pound, with GBP/USD down 0.08% and trading at 1.6178.
The U.S. currency was up against the yen, with USD/JPY trading up 0.18% at 80.04, and up against the Swiss franc, with USD/CHF up 0.11% and trading at 0.9216.
The dollar was up against its counterparts in Canada, Australia and New Zealand, with USD/CAD up 0.09% at 0.9940, AUD/USD down 0.25% at 1.0172 and NZD/USD down 0.28% at 0.7924.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13% at 79.80.
Later Tuesday, markets will keep an eye out for Federal Reserve Bank of Dallas President and Federal Open Market Committee (FOMC) voting member Richard Fisher, who will speak in public.
The euro was lower against the dollar in Asian trading on Tuesday, with EUR/USD down 0.11% and trading at 1.3036.
Election results in France and Greece over the weekend sent investors running for cover in the U.S. dollar, a traditionally safe-haven currency.
In France, socialist Francois Hollande beat out President Nicolas Sarkozy, as voters rejected harsh austerity measures supported by the outgoing administration and opted to embrace Hollande's calls to prioritize growth over cutting spending.
In Greece, the country's leading political parties failed to secure 50 percent of the votes in parliamentary elections, with far-left and far-right fringe parties eating away at the establishment's hold on power and casting the country's leadership structure in doubt.
Greek election results especially roiled markets worldwide.
Fears grew after the elections that any policy shifts in Athens could lead to a rejection of austerity measures demanded by the International Monetary Fund, the European Commission and the European Central Bank in exchange for bailout assistance.
Such a move could involve Athens abandoning the euro down the road, which could shock markets and threaten Europe's recovery.
However, the greenback spent early Asian trading still reeling from Friday's jobs report in the U.S., with the Bureau of Labor Statistics reporting that the country added a net 115,000 jobs in April, far lower than expected.
The greenback, meanwhile, was up against the pound, with GBP/USD down 0.08% and trading at 1.6178.
The U.S. currency was up against the yen, with USD/JPY trading up 0.18% at 80.04, and up against the Swiss franc, with USD/CHF up 0.11% and trading at 0.9216.
The dollar was up against its counterparts in Canada, Australia and New Zealand, with USD/CAD up 0.09% at 0.9940, AUD/USD down 0.25% at 1.0172 and NZD/USD down 0.28% at 0.7924.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13% at 79.80.
Later Tuesday, markets will keep an eye out for Federal Reserve Bank of Dallas President and Federal Open Market Committee (FOMC) voting member Richard Fisher, who will speak in public.