Investing.com - The dollar was largely weaker against other major currencies Tuesday after investors sold their greenback positions to return to Asian equities markets, which plummeted on news that North Korean leader Kim Jong il had passed away over the weekend.
Residuals fears that Europe is still far from revolving its debt crisis have kept the greenback strong against European currencies, although profit-taking on Tuesday reversed that trend.
Furthermore, European Central Bank President Mario Draghi told the Financial Times over the weekend countries considering defaulting and exiting the eurozone should reconsider, as the alternative could be far worse down the road.
"Leaving the euro area, devaluing your currency, you create a big inflation, and at the end of that road, the country would have to undertake the same reforms that were due to begin with, but in a much weaker position," Draghi told the Financial Times.
"When one starts with this you never know how it ends really."
Meanwhile the death of North Korean leader Kim Jong il frayed nerves a little less Tuesday than on Monday, with investors felling a little more secure returning to stock markets.
In early Asian trading on Tuesday, EUR/USD was up 0.01%, trading at 1.3000.
The greenback was down against the pound, with Cable up 0.08% at 1.5512.
Meanwhile, the greenback was down 0.04% against the yen, with USD/JPY was trading at 78.02, and up slightly against the Swiss franc, with USD/CHF trading up 0.01% at 0.9374.
The greenback was weaker against currencies in Canada, Australia and New Zealand, with USD/CAD down 0.11% at 1.0376, AUD/USD up 0.26% at 0.9924 and NZD/USD up 0.39% at 0.7586.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 80.92.
Later on Tuesday, markets will await inflation data out of Canada as well as business climate and consumer climate data out of Germany.
Data on housing starts and business permits in the U.S. will come out as well, and number suggesting recovery could boost the dollar.
The Bank of Japan's policy board is scheduled to meet to vote on whether to move or keep interest rates at 0.10%, although markets are expecting Tokyo's monetary policy authorities to hold and make not changes.
Residuals fears that Europe is still far from revolving its debt crisis have kept the greenback strong against European currencies, although profit-taking on Tuesday reversed that trend.
Furthermore, European Central Bank President Mario Draghi told the Financial Times over the weekend countries considering defaulting and exiting the eurozone should reconsider, as the alternative could be far worse down the road.
"Leaving the euro area, devaluing your currency, you create a big inflation, and at the end of that road, the country would have to undertake the same reforms that were due to begin with, but in a much weaker position," Draghi told the Financial Times.
"When one starts with this you never know how it ends really."
Meanwhile the death of North Korean leader Kim Jong il frayed nerves a little less Tuesday than on Monday, with investors felling a little more secure returning to stock markets.
In early Asian trading on Tuesday, EUR/USD was up 0.01%, trading at 1.3000.
The greenback was down against the pound, with Cable up 0.08% at 1.5512.
Meanwhile, the greenback was down 0.04% against the yen, with USD/JPY was trading at 78.02, and up slightly against the Swiss franc, with USD/CHF trading up 0.01% at 0.9374.
The greenback was weaker against currencies in Canada, Australia and New Zealand, with USD/CAD down 0.11% at 1.0376, AUD/USD up 0.26% at 0.9924 and NZD/USD up 0.39% at 0.7586.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 80.92.
Later on Tuesday, markets will await inflation data out of Canada as well as business climate and consumer climate data out of Germany.
Data on housing starts and business permits in the U.S. will come out as well, and number suggesting recovery could boost the dollar.
The Bank of Japan's policy board is scheduled to meet to vote on whether to move or keep interest rates at 0.10%, although markets are expecting Tokyo's monetary policy authorities to hold and make not changes.