Forexpros – The U.S. dollar was broadly lower against its major counterparts on Tuesday, as risk appetite improved but the euro remained vulnerable as concerns over sovereign debt issues in the single currency bloc persisted.
During European morning trade, the dollar was lower against the euro, with EUR/USD advancing 0.71% to hit 1.3025.
Official data released earlier showed that the number of unemployed people in Germany fell more-than-expected in December, while the country’s jobless rate dropped to a record low.
But sentiment on the euro remained fragile amid fears over the risk of sovereign debt downgrades across the shared currency zone, as investors looked ahead to bond auctions by Germany and France later in the week to gauge borrowing conditions in the region.
The greenback was also down against the pound, with GBP/USD rising 0.46% to hit 1.5583.
A report earlier showed that manufacturing activity in the U.K. improved in December, but remained in contraction territory for the third consecutive month.
The greenback was lower against the yen and the Swiss franc, with USD/JPY slipping 0.14% to hit 76.77 and USD/CHF shedding 0.64% to hit 0.9336.
In Switzerland, data showed that manufacturing activity increased more-than-expected in December, returning to expansionary territory after contracting in the three previous months.
In addition, the greenback was lower against its Canadian, Australian and New Zealand cousins, with USD/CAD falling 0.57% to hit 1.0129, AUD/USD rallying 0.87% to hit 1.0322 and NZD/USD advancing 1.11% to hit 0.7870.
The Australian dollar was boosted after data on Sunday showed that Chinese manufacturing activity expanded in December after contracting the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.48% to hit 79.89.
Later Tuesday, the U.S. Institute of Supply Management was to publish a report on manufacturing activity, while the Federal Reserve was to publish the minutes of its December policy meeting.
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