Investing.com - The dollar edged up against the other major currencies on Tuesday, still trading near nine-year highs despite the release of disappointing U.S. service sector and factory orders data as heightened risk aversion continued to support safe haven demand.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index declined to a six-month low of 56.2 last month from a reading of 59.3 in November. Analysts had expected the index to fall to 58.0 in December.
A separate report showed that U.S. factory orders dropped 0.7% in November, confounding expectations for a 0.5% slip, after a 0.7% fall in October.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.08% at 91.71, not far from Monday's nine-year high of 92.05.
EUR/USD was last down 0.16% to 1.1914, not far from the lows of 1.1851 struck on Monday, the weakest level since February 2006.
The single currency touched session lows after data showing euro zone private sector activity grew at a slower pace than initially estimated in December.
The Markit composite PMI, which measures activity in the manufacturing and services sectors in the euro area, was revised down to 51.4 in December from the preliminary estimate of 51.7. The figure was still higher than November’s reading of 51.1.
The weak data added to pressure on the European Central Bank to implement quantitative easing measures ahead of its upcoming meeting on January 22.
Ongoing uncertainty over Greece’s future in the euro zone if far-left anti-austerity party Syriza won elections due to be held later this month also weighed on the single currency.
The dollar declined against the yen, with USD/JPY down 0.63% to 118.88 from 119.62 late Monday.
The safe haven yen was boosted by declines in global equity markets, as falling oil prices and concerns over the outlook for the euro zone economy sparked a selloff in stocks.
Elsewhere, sterling remained near 17-month lows after data showing an slowdown in the U.K.'s dominant service sector last month underlined expectations that the Bank of England will keep rates on hold for most of 2015.
GBP/USD slid 0.41% to 1.5187, not far from Monday’s lows of 1.5158, the weakest since August 2013.
USD/CHF edged up 0.09% to 1.0079 as weakness in the euro kept pressure on the Swiss National Bank to defend its 1.20 per euro exchange rate floor.
The commodity-exposed Australian, New Zealand and Canadian dollars pushed higher, but remained within striking distance of multi-year lows, as a rout in global oil prices continued.
AUD/USD gained 0.48% to 0.8123, NZD/USD rallied 1.16% to trade at 0.7776 and USD/CAD inched 0.08% higher to trade at 1.1772.