Investing.com - The U.S. dollar traded higher against most of its major rivals during Tuesday’s Asian session as traders shifted their attention away news that former U.S. Treasury Secretary Larry Summers will not be the next Federal Reserve chairman. The Fed’s meeting later this week and the possibility of tapering of quantitative easing are now in the spotlight.
In Asian trading Tuesday, EUR/USD inched down 0.03% to 1.3330. European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
USD/JPY gained 0.17% to 99.25. The yen rallied against the greenback during Monday’s Asian session on news of the Summers withdrawal, but the Japanese currency has since given back those gains as traders speculate the Fed will finally announce tapering measures later this week.
A reduction in asset purchases by the Fed is seen as beneficial to the dollar and has the potential to lift interest rates.
GBP/USD inched down 0.01% to 1.5897, but sterling continues to reside near eight-month highs against the greenback.
USD/CHF nudged up 0.01% to 0.9275 while USD/CAD rose 0.05% to 1.0330. The greenback was also supported by some mediocre U.S. data.
In U.S. economic news out Monday, a report from the Federal Reserve today showed U.S. industrial production rose 0.4% last month after a flat reading in July. The August increase was the biggest in six months. Housing and automobile production paced the gains.
The New York Federal Reserve’s Empire State Manufacturing survey fell to 6.29 from 8.24 in August. Economists expected a reading of 9.20. The new orders index rose to 2.35 from 0.27 while shipments soared to 16.43, the highest level in more than a year, from 1.47. Readings above zero indicate expansion.
AUD/USD fell 0.09% to 0.9311 after the publication of minutes from the Reserve Bank of Australia’s most recent meeting. NZD/USD rose 0.05% to 0.8176 while the U.S. Dollar Index added 0.06% to 81.48.
In Asian trading Tuesday, EUR/USD inched down 0.03% to 1.3330. European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
USD/JPY gained 0.17% to 99.25. The yen rallied against the greenback during Monday’s Asian session on news of the Summers withdrawal, but the Japanese currency has since given back those gains as traders speculate the Fed will finally announce tapering measures later this week.
A reduction in asset purchases by the Fed is seen as beneficial to the dollar and has the potential to lift interest rates.
GBP/USD inched down 0.01% to 1.5897, but sterling continues to reside near eight-month highs against the greenback.
USD/CHF nudged up 0.01% to 0.9275 while USD/CAD rose 0.05% to 1.0330. The greenback was also supported by some mediocre U.S. data.
In U.S. economic news out Monday, a report from the Federal Reserve today showed U.S. industrial production rose 0.4% last month after a flat reading in July. The August increase was the biggest in six months. Housing and automobile production paced the gains.
The New York Federal Reserve’s Empire State Manufacturing survey fell to 6.29 from 8.24 in August. Economists expected a reading of 9.20. The new orders index rose to 2.35 from 0.27 while shipments soared to 16.43, the highest level in more than a year, from 1.47. Readings above zero indicate expansion.
AUD/USD fell 0.09% to 0.9311 after the publication of minutes from the Reserve Bank of Australia’s most recent meeting. NZD/USD rose 0.05% to 0.8176 while the U.S. Dollar Index added 0.06% to 81.48.