Investing.com - The dollar strengthened against the world's major global currencies on Wednesday as investors remained camped out in the safe-haven currency awaiting word of progress over the U.S. fiscal cliff.
In Asian trading on Wednesday, EUR/USD was down 0.11% at 1.2803
Investors were on edge due to uncertainty over the U.S. fiscal cliff, a combination of expiring tax breaks and inbound spending cuts converging at the same time after the end of this year.
If left unaddressed by Congress, the fiscal cliff could throw the U.S. economy into a recession next year.
Earlier, Federal Reserve Chairman Ben Bernanke urged the White House and Congress to find a way to steer the U.S. economy away from the cliff, which fueled demand for the dollar.
Meanwhile, Israel and Hamas militants in the Gaza Strip continued to trade fire despite hopes for a cease fire, which kept investors parked in the U.S. currency.
The euro continued to weaken on reaction to a Moody's decision to downgrade France's sovereign ratings to Aa1 from Aaa.
Elsewhere in Europe, eurozone policymakers opened a meeting to discuss Greece's finances, with a EUR31.5 billion tranche of aid pending approval.
The dollar served as a safe-harbor of choice for investors awaiting an announcement.
Elsewhere in the U.S., housing starts rose 3.6% in October to a seasonally adjusted annual rate of 894,000, the biggest gain in four years.
The number of building permits issued in October fell 2.7% to a seasonally adjusted 866,000.
Both figures beat expectations.
Meanwhile, the greenback was slightly higher against the pound, with GBP/USD trading down 0.02% at 1.5922.
The dollar was up against the yen, with USD/JPY trading up 0.32% at 81.94 and up against the Swiss franc, with USD/CHF trading up 0.14% at 0.9413.
The Bank of Japan met earlier and left benchmark interest rates unchanged at 0.10%.
The monetary authority also made no changes to the country's JPY91 trillion asset purchasing plan, though the yen weakened to a 7-month low against the greenback on Wednesday amid building market sentiment that looser policies are on the way after December's elections.
Japanese opposition leader Shinzo Abe may become the country's next prime minister during Dec. 16 elections.
Abe has said he favors more aggressive monetary stimulus measures to jolt the Japanese economy.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.01% at 0.9966, AUD/USD down 0.07% at 1.0381 and NZD/USD trading down 0.12% at 0.8162.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 80.97.
Later Wednesday, the U.S. will release weekly government reports on initial jobless claims and crude oil inventories.
This data is being released one day early ahead of the Thanksgiving holiday on Thursday.
In addition, the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
In Asian trading on Wednesday, EUR/USD was down 0.11% at 1.2803
Investors were on edge due to uncertainty over the U.S. fiscal cliff, a combination of expiring tax breaks and inbound spending cuts converging at the same time after the end of this year.
If left unaddressed by Congress, the fiscal cliff could throw the U.S. economy into a recession next year.
Earlier, Federal Reserve Chairman Ben Bernanke urged the White House and Congress to find a way to steer the U.S. economy away from the cliff, which fueled demand for the dollar.
Meanwhile, Israel and Hamas militants in the Gaza Strip continued to trade fire despite hopes for a cease fire, which kept investors parked in the U.S. currency.
The euro continued to weaken on reaction to a Moody's decision to downgrade France's sovereign ratings to Aa1 from Aaa.
Elsewhere in Europe, eurozone policymakers opened a meeting to discuss Greece's finances, with a EUR31.5 billion tranche of aid pending approval.
The dollar served as a safe-harbor of choice for investors awaiting an announcement.
Elsewhere in the U.S., housing starts rose 3.6% in October to a seasonally adjusted annual rate of 894,000, the biggest gain in four years.
The number of building permits issued in October fell 2.7% to a seasonally adjusted 866,000.
Both figures beat expectations.
Meanwhile, the greenback was slightly higher against the pound, with GBP/USD trading down 0.02% at 1.5922.
The dollar was up against the yen, with USD/JPY trading up 0.32% at 81.94 and up against the Swiss franc, with USD/CHF trading up 0.14% at 0.9413.
The Bank of Japan met earlier and left benchmark interest rates unchanged at 0.10%.
The monetary authority also made no changes to the country's JPY91 trillion asset purchasing plan, though the yen weakened to a 7-month low against the greenback on Wednesday amid building market sentiment that looser policies are on the way after December's elections.
Japanese opposition leader Shinzo Abe may become the country's next prime minister during Dec. 16 elections.
Abe has said he favors more aggressive monetary stimulus measures to jolt the Japanese economy.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.01% at 0.9966, AUD/USD down 0.07% at 1.0381 and NZD/USD trading down 0.12% at 0.8162.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 80.97.
Later Wednesday, the U.S. will release weekly government reports on initial jobless claims and crude oil inventories.
This data is being released one day early ahead of the Thanksgiving holiday on Thursday.
In addition, the University of Michigan is to release revised data on consumer sentiment and inflation expectations.