Investing.com - The U.S. dollar held onto gains against other major counterparts on Tuesday, as speculation over who will replace Janet Yellen at the head of the Federal Reserve lent support to the greenback.
The greenback was boosted by reports on Monday that U.S. President Donald Trump was favoring Stanford economist John Taylor to replace Federal Reserve Chair Janet Yellen next year. Taylor is seen as more hawkish than current Yellen.
The U.S. dollar was also supported after Fed Chair Yellen said Sunday that the economy remains strong and the strength of the labor market calls for continued gradual increases in interest rates despite soft inflation.
EUR/USD slipped 0.25% to 1.1766 after data showed that German economic sentiment rose much less than expected in October.
Elsewhere, the pound steady at 1.3263 after data showed that U.K. inflation hit a five-and-a-half year high in September.
The yen was also steady, with USD/JPY at 112.15, while USD/CHF edged 0.17% higher to 0.9772.
The Australian dollar was little changed, with AUD/USD at 0.7856, while NZD/USD added 0.14% to trade at 0.7179.
Statistics New Zealand reported on Tuesday that consumer prices increased 0.5% in the third quarter, beating expectations for a 0.4% gain.
Year-over-year, consumer prices rose 1.9% in the three months to September, compared to expectations for a 1.8% gain.
At the same times, the minutes of the Reserve Bank of Australia's October policy meeting showed that policymakers are in no hurry to raise interest rates.
“Members observed that moves towards higher interest rates in other economies were a welcome development, but did not have mechanical implications for the setting of policy in Australia,” the report said.
Meanwhile, the Canadian dollar was lower, with USD/CAD up 0.13% at 1.2534.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% at 93.30 by 05:15 a.m. ET (09:15 GMT), its highest since October 10.