Forex - Dollar higher as traders buy the dip

Investing.com - The U.S. dollar traded higher against most of its major rivals during Tuesday’s Asian session as traders finally gave a nod to the greenback amid a crippling government shutdown in the U.S. that has pressured the dollar in recent days.

In Asian trading Tuesday, EUR/USD fell 0.08% to 1.3571 after data released Monday revealed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.

A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1 in October from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.

USD/JPY rose 0.12% to 96.83 after Ministry of Finance data showed Japan’s current account surplus plunged 63.7% on a year-over-year basis. The surplus was JPY161.5 billion, well below estimates calling for a surplus of JPY540.9 billion. Economists expected Japan’s current account surplus to rise 23.4%. The surplus was the lowest for any August since at least 1985, Bloomberg reported.

GBP/USD fell 0.07% to 1.6085 after the U.K. RICS home price index rose 54% in September from 41% in August. The August reading was revised higher from 40%. Analysts expected a September reading of 45%.

USD/CHF added 0.13% to 0.9040 while USD/CAD gained 0.12% to 1.0325 on news the U.S. could surpass Russia for the title of world’s largest oil and natural gas producer.

On Monday, Statistics Canada said the total value of building permits issued in Canada was down 21.1% in August, following an upwardly revised increase of 21.4% in July. Analysts had expected building permits to decline by 7%.

The ongoing U.S. government shutdown pressured riskier currencies as AUD/USD lost 0.08% to 0.9422. NZD/USD dipped 0.30% to 0.8280. The U.S. Dollar Index inched up 0.05% to 80.05.