Investing.com – The U.S. dollar staged a broad rally against the other major currencies on Tuesday, after China’s central bank unexpectedly hiked its benchmark interest rate in an attempt to stem the country’s rapid rate of growth.
During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.84% to hit 1.3817. Earlier Tuesday, ZEW Centre for Economic Research said that its index of German economic sentiment fell more-than-expected in October.
The greenback was also up against the pound and the Swiss franc with GBP/USD plunging 0.84% to hit 1.5741 and USD/CHF soaring 1.28% to hit 0.9619.
Elsewhere, the greenback was up against the yen, with USD/JPY gaining 0.53% to hit 81.70. Earlier in the day, the Japanese government downgraded its assessment of the economy for the first time in 20 months.
In addition, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD jumping 1.52% to hit 1.0326, AUD/USD plummeting 1.62% to hit 0.9730 and NZD/USD falling 0.76% to hit 0.7488.
Earlier in Tuesday, the Bank of Canada left its benchmark interest rate unchanged at 1.0% in October, in line with expectations.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.25%.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.
During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.84% to hit 1.3817. Earlier Tuesday, ZEW Centre for Economic Research said that its index of German economic sentiment fell more-than-expected in October.
The greenback was also up against the pound and the Swiss franc with GBP/USD plunging 0.84% to hit 1.5741 and USD/CHF soaring 1.28% to hit 0.9619.
Elsewhere, the greenback was up against the yen, with USD/JPY gaining 0.53% to hit 81.70. Earlier in the day, the Japanese government downgraded its assessment of the economy for the first time in 20 months.
In addition, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD jumping 1.52% to hit 1.0326, AUD/USD plummeting 1.62% to hit 0.9730 and NZD/USD falling 0.76% to hit 0.7488.
Earlier in Tuesday, the Bank of Canada left its benchmark interest rate unchanged at 1.0% in October, in line with expectations.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.25%.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.