Investing.com - The dollar rose against most major global currencies on Tuesday as investors viewed the unit as the safe harbor of choice to ride out escalating Greek solvency woes and building fears that tax hikes and spending cuts could bruise the U.S. economy next year.
In Asian trading on Tuesday, EUR/USD was down 0.20% at 1.2684.
Greece recently approved a budget for next year and also pushed through politically unpopular budget cuts and tax hikes, both requirements for the country to tap a EUR31.5 billion tranche of financial aid.
Eurozone finance ministers met earlier to review the details of Greece's progress but have yet to free up the money for Athens, which sent investors snapping up safe-haven dollar positions amid a session that saw muted appetite for risk.
Eurozone finance ministers have given Athens two years to meet austerity targets though the country is quickly running out of funding and will need a tranche of aid soon.
Eurozone policymakers are scheduled to meet again to discuss Greece's finances on Nov. 20.
Greece should not default until then as it can roll over debts in the meantime.
Once approved, the next shot of financial aid will end shorter-term solvency issues for Greece, but the country and creditors must still agree on ways to lower longer-term debt burdens, which dampened spirits.
The dollar also saw support on growing fears the U.S. risks falling into an avoidable recession in 2013.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession next year if left unaddressed by Congress.
If untreated, the fiscal cliff could siphon over USD600 billion out of the U.S. economy next year alone in the form of rising taxes and cuts to government spending.
Lawmakers have expressed confidence that they'll avoid partisan bickering and cut a deal, but until an announcement hits the wire, investors will remain wary.
The greenback was up against the pound, with GBP/USD trading down 0.09% at 1.5864.
The dollar was down against the yen, with USD/JPY trading down 0.09% at 79.42 and up against the Swiss franc, with USD/CHF trading up 0.21% at 0.9502.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.04% at 1.0002, AUD/USD down 0.16% at 1.0411 and NZD/USD trading down 0.07% at 0.8169.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% at 81.25.
Later Tuesday, the U.S. is to release official data on the federal budget balance.
In Asian trading on Tuesday, EUR/USD was down 0.20% at 1.2684.
Greece recently approved a budget for next year and also pushed through politically unpopular budget cuts and tax hikes, both requirements for the country to tap a EUR31.5 billion tranche of financial aid.
Eurozone finance ministers met earlier to review the details of Greece's progress but have yet to free up the money for Athens, which sent investors snapping up safe-haven dollar positions amid a session that saw muted appetite for risk.
Eurozone finance ministers have given Athens two years to meet austerity targets though the country is quickly running out of funding and will need a tranche of aid soon.
Eurozone policymakers are scheduled to meet again to discuss Greece's finances on Nov. 20.
Greece should not default until then as it can roll over debts in the meantime.
Once approved, the next shot of financial aid will end shorter-term solvency issues for Greece, but the country and creditors must still agree on ways to lower longer-term debt burdens, which dampened spirits.
The dollar also saw support on growing fears the U.S. risks falling into an avoidable recession in 2013.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession next year if left unaddressed by Congress.
If untreated, the fiscal cliff could siphon over USD600 billion out of the U.S. economy next year alone in the form of rising taxes and cuts to government spending.
Lawmakers have expressed confidence that they'll avoid partisan bickering and cut a deal, but until an announcement hits the wire, investors will remain wary.
The greenback was up against the pound, with GBP/USD trading down 0.09% at 1.5864.
The dollar was down against the yen, with USD/JPY trading down 0.09% at 79.42 and up against the Swiss franc, with USD/CHF trading up 0.21% at 0.9502.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.04% at 1.0002, AUD/USD down 0.16% at 1.0411 and NZD/USD trading down 0.07% at 0.8169.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% at 81.25.
Later Tuesday, the U.S. is to release official data on the federal budget balance.