Investing.com – The U.S. dollar turned lower against its major counterparts on Tuesday, as global equities markets notched up strong gains amid fresh hopes that European leaders will take resolute action to deal with the financial crisis in the euro zone.
During European afternoon trade, the greenback was down against the euro, with EUR/USD rising 0.38% to hit 1.3584.
Market sentiment was boosted by speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, but expectations were tempered earlier after Spain's economy minister said plans to expand the fund sevenfold to EUR2 trillion were not on the table.
The greenback was also lower against the pound, with GBP/USD rising 0.33% to hit 1.5615.
Earlier in the day, a report by the Confederation of British Industry showed that retail sales in the U.K. unexpectedly declined in September, falling to the lowest level since May 2010.
Elsewhere, the greenback was higher against the yen but lower against the Swiss franc with USD/JPY easing up 0.09% to hit 76.42 and USD/CHF sliding 0.16% to hit 0.8999.
In Switzerland, a report earlier showed that the UBS consumption indicator fell by the most in nine years in August, as the strong Swiss franc weighed on consumer sentiment.
Meanwhile, the Swiss KOF Economic Institute cut its 2011 forecast for economic growth to 2.3% from 2.8%, citing the weakness in the U.S. economy, the debt crisis in Europe and the persistent strength of the Swiss franc.
Elsewhere, Japan's government announced new steps to lessen the impact of the strong yen on the country's economy and said it plans to enact the measures before it completes an extra budget to fund reconstruction spending.
The greenback was sharply lower against its Canadian, Australian and New Zealand cousins, with USD/CAD shedding 0.57% to hit 1.0192, AUD/USD surging 0.93% to hit 0.9926 and NZD/USD jumping 1.04% to hit 0.7882.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.54% to hit 78.36.
Later in the day, a U.S. report on consumer confidence was to be released, while Federal Open Market Committee member Richard Fisher was also due to speak.
During European afternoon trade, the greenback was down against the euro, with EUR/USD rising 0.38% to hit 1.3584.
Market sentiment was boosted by speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, but expectations were tempered earlier after Spain's economy minister said plans to expand the fund sevenfold to EUR2 trillion were not on the table.
The greenback was also lower against the pound, with GBP/USD rising 0.33% to hit 1.5615.
Earlier in the day, a report by the Confederation of British Industry showed that retail sales in the U.K. unexpectedly declined in September, falling to the lowest level since May 2010.
Elsewhere, the greenback was higher against the yen but lower against the Swiss franc with USD/JPY easing up 0.09% to hit 76.42 and USD/CHF sliding 0.16% to hit 0.8999.
In Switzerland, a report earlier showed that the UBS consumption indicator fell by the most in nine years in August, as the strong Swiss franc weighed on consumer sentiment.
Meanwhile, the Swiss KOF Economic Institute cut its 2011 forecast for economic growth to 2.3% from 2.8%, citing the weakness in the U.S. economy, the debt crisis in Europe and the persistent strength of the Swiss franc.
Elsewhere, Japan's government announced new steps to lessen the impact of the strong yen on the country's economy and said it plans to enact the measures before it completes an extra budget to fund reconstruction spending.
The greenback was sharply lower against its Canadian, Australian and New Zealand cousins, with USD/CAD shedding 0.57% to hit 1.0192, AUD/USD surging 0.93% to hit 0.9926 and NZD/USD jumping 1.04% to hit 0.7882.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.54% to hit 78.36.
Later in the day, a U.S. report on consumer confidence was to be released, while Federal Open Market Committee member Richard Fisher was also due to speak.