Investing.com - The dollar rose against most major global currencies on Tuesday in edgy trading, as investors opted to remain stashed in the safe-harbor greenback to await the results of Tuesday's presidential elections in the U.S.
In Asian trading on Tuesday, EUR/USD was down 0.09% at 1.2785.
President Barack Obama and his challenger, Republican Mitt Romney, are running neck and neck in the polls.
With no clear winner, investors have flocked to safety of the dollar before elections to plan possible outcomes, which could have far-reaching implications for the U.S. currency.
Mitt Romney has suggested he opposes the Federal Reserve's loose policies, including quantitative easing, under which the Fed buys bonds held by banks, pumping the economy full of liquidity to depress borrowing costs to spur recovery.
Such policies weaken the greenback as a side effect, and talk of tightening could bolster the dollar down the road.
Fed Chairman Ben Bernanke's term ends in January of 2014, and a Romney victory could up the chances that today's head of the U.S. central bank could be replaced by a more hawkish figure.
Yet Romney has proposed cutting taxes and dismantling regulations erected under President Obama in the last four years, and a Romney victory could see the dollar fall amid a risk-on trading session in the coming days.
An Obama victory could signal the Fed will likely stick with its loose policies, which would could keep the greenback weak.
Uncertainty kept investors largely buying dollars until a winner is announced, with fears brewing that a close race could end up in a recount lasting several weeks similar to the 2000 election.
Ongoing uncertainty in Europe, where Greece is facing opposition to a latest round of austerity measures, further bolstered the dollar.
The Greek government has sought approval for an austerity plan calling for EUR13.5 billion in spending cuts and tax hikes from Parliament, though coalition politicians have balked.
Greece must approve the reforms and pass a new budget to free up EUR31.5 billion in aid arranged by the International Monetary Fund, the European Commission and the European Central Bank.
Some coalition politicians have said they oppose wage cuts.
Greek Prime Minister Antonis Samaras has said proposed wage cuts are the last of such measures, though investors still sidestepped the single currency to avoid uncertainty.
Greece's lawmakers are due to vote on the austerity proposal on Wednesday, which could determine if Athens receives its next shot of rescue funding.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5975.
A U.K. service-sector purchasing managers index fell to 50.6 in October from 52.2 in September, disappointing analysts who were forecasting a reading of 52.0.
The dollar was down against the yen, with USD/JPY trading down 0.09% at 80.22 and up against the Swiss franc, with USD/CHF trading up 0.11% at 0.9444.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.02% at 0.9962, AUD/USD up 0.06% at 1.0371 and NZD/USD trading up 0.01% at 0.8254.
Month-on-month Canadian building permits fell by 13.2% in September, far outpacing market calls for a 3% drop.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 80.84.
Investors shrugged off news that the U.S. Institute of Supply Management's service-sector purchasing managers index fell to 54.2 in October from 55.1 in September.
Analysts had expected the PMI to decline to 54.5.
Later Tuesday, all eyes will remain focused on U.S. elections.
In Asian trading on Tuesday, EUR/USD was down 0.09% at 1.2785.
President Barack Obama and his challenger, Republican Mitt Romney, are running neck and neck in the polls.
With no clear winner, investors have flocked to safety of the dollar before elections to plan possible outcomes, which could have far-reaching implications for the U.S. currency.
Mitt Romney has suggested he opposes the Federal Reserve's loose policies, including quantitative easing, under which the Fed buys bonds held by banks, pumping the economy full of liquidity to depress borrowing costs to spur recovery.
Such policies weaken the greenback as a side effect, and talk of tightening could bolster the dollar down the road.
Fed Chairman Ben Bernanke's term ends in January of 2014, and a Romney victory could up the chances that today's head of the U.S. central bank could be replaced by a more hawkish figure.
Yet Romney has proposed cutting taxes and dismantling regulations erected under President Obama in the last four years, and a Romney victory could see the dollar fall amid a risk-on trading session in the coming days.
An Obama victory could signal the Fed will likely stick with its loose policies, which would could keep the greenback weak.
Uncertainty kept investors largely buying dollars until a winner is announced, with fears brewing that a close race could end up in a recount lasting several weeks similar to the 2000 election.
Ongoing uncertainty in Europe, where Greece is facing opposition to a latest round of austerity measures, further bolstered the dollar.
The Greek government has sought approval for an austerity plan calling for EUR13.5 billion in spending cuts and tax hikes from Parliament, though coalition politicians have balked.
Greece must approve the reforms and pass a new budget to free up EUR31.5 billion in aid arranged by the International Monetary Fund, the European Commission and the European Central Bank.
Some coalition politicians have said they oppose wage cuts.
Greek Prime Minister Antonis Samaras has said proposed wage cuts are the last of such measures, though investors still sidestepped the single currency to avoid uncertainty.
Greece's lawmakers are due to vote on the austerity proposal on Wednesday, which could determine if Athens receives its next shot of rescue funding.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5975.
A U.K. service-sector purchasing managers index fell to 50.6 in October from 52.2 in September, disappointing analysts who were forecasting a reading of 52.0.
The dollar was down against the yen, with USD/JPY trading down 0.09% at 80.22 and up against the Swiss franc, with USD/CHF trading up 0.11% at 0.9444.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.02% at 0.9962, AUD/USD up 0.06% at 1.0371 and NZD/USD trading up 0.01% at 0.8254.
Month-on-month Canadian building permits fell by 13.2% in September, far outpacing market calls for a 3% drop.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 80.84.
Investors shrugged off news that the U.S. Institute of Supply Management's service-sector purchasing managers index fell to 54.2 in October from 55.1 in September.
Analysts had expected the PMI to decline to 54.5.
Later Tuesday, all eyes will remain focused on U.S. elections.