Investing.com - The U.S. dollar was lower against all of its major counterparts on Tuesday, but losses were limited as concerns over the sovereign debt crisis in the euro zone kept markets on edge.
During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.23% to hit 1.2795.
The euro found support ahead of a meeting between German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde later in the day to discuss Greece’s bailout.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Meanwhile, concerns over weakness in the euro zone banking sector continued after a report on Monday showed that overnight deposits at the European Central Bank hit a fresh record of EUR464 billion, indicating that banks in the region remain unwilling to lend to each other.
The greenback was also lower against the pound, with GBP/USD rising 0.16% to hit 1.5483.
In addition, the greenback was down against the yen and the Swiss franc, with USD/JPY dipping 0.04% to hit 76.81 and USD/CHF slipping 0.17% to hit 0.9478.
On Monday, the Swiss National Bank reiterated its pledge to defend the four-month old cap on the Swiss franc after Phillip Hildebrand resigned as chairman of the central bank in the wake of a controversial currency trade made by his wife, just weeks before the SNB intervened to curb the franc’s gains.
The greenback was sharply lower against its counterparts in Canada, Australia and New Zealand, with USD/CAD shedding 0.44% to hit 1.0189, AUD/USD advancing 0.80% to hit 1.0320 and NZD/USD surging 0.88% to hit 0.7941.
Earlier in the day, official data showed that Australian building approvals rose more-than-expected in November, climbing 8.4% after a 10% drop the previous month, surpassing expectations for a 6.6% increase.
In New Zealand, data showed that building consents fell 6.4% in November after a 10.7% increase the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% to hit 81.14.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable at 7.26%, while the yield on Spanish 10-year bonds was at 5.65%.
During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.23% to hit 1.2795.
The euro found support ahead of a meeting between German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde later in the day to discuss Greece’s bailout.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Meanwhile, concerns over weakness in the euro zone banking sector continued after a report on Monday showed that overnight deposits at the European Central Bank hit a fresh record of EUR464 billion, indicating that banks in the region remain unwilling to lend to each other.
The greenback was also lower against the pound, with GBP/USD rising 0.16% to hit 1.5483.
In addition, the greenback was down against the yen and the Swiss franc, with USD/JPY dipping 0.04% to hit 76.81 and USD/CHF slipping 0.17% to hit 0.9478.
On Monday, the Swiss National Bank reiterated its pledge to defend the four-month old cap on the Swiss franc after Phillip Hildebrand resigned as chairman of the central bank in the wake of a controversial currency trade made by his wife, just weeks before the SNB intervened to curb the franc’s gains.
The greenback was sharply lower against its counterparts in Canada, Australia and New Zealand, with USD/CAD shedding 0.44% to hit 1.0189, AUD/USD advancing 0.80% to hit 1.0320 and NZD/USD surging 0.88% to hit 0.7941.
Earlier in the day, official data showed that Australian building approvals rose more-than-expected in November, climbing 8.4% after a 10% drop the previous month, surpassing expectations for a 6.6% increase.
In New Zealand, data showed that building consents fell 6.4% in November after a 10.7% increase the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% to hit 81.14.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable at 7.26%, while the yield on Spanish 10-year bonds was at 5.65%.