Forexpros – The U.S. dollar remained broadly higher against its major counterparts on Tuesday, amid growing concerns over the debt crisis in the euro zone and after the release of broadly better-than-expected U.S. data.
During U.S. morning trade, the dollar was up against the euro, with EUR/USD shedding 0.72% to hit 1.3535.
Concerns over sovereign debt contagion to core euro zone economies mounted as Italian 10-year bond yields rose to near unsustainable levels, climbing above 7% earlier, while the yield on Spanish 10-year bonds rose above 6% for the first time since August and French 10-year bond yields climbed to a euro-era high.
Meanwhile, preliminary data showed that the euro zone economy expanded in line with expectations in the third quarter, expanding 0.2%.
Separately, data showed that the ZEW index of German economic sentiment fell to a three-year low this month.
The greenback was also higher against the pound, with GBP/USD down 0.54% to hit 1.5823.
Earlier in the day, official data showed that consumer price inflation in the U.K. eased in October, ticking down to 5%, from a three-year high of 5.2% the previous month. Analysts had expected CPI to tick down to 5.1%.
Elsewhere, the greenback dipped against the yen but rallied against the Swiss franc, with USD/JPY sliding 0.14% to hit 76.96, and USD/CHF advancing 0.79% to hit 0.9155.
The greenback was also higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.57% to hit 1.0228, AUD/USD shedding 0.36% to hit 1.0167 and NZD/USD tumbling 1.24% to hit 0.7707.
In Canada, official data showed that manufacturing sales rose more-than-expected in September, advancing 2.6% after a 1.4% rise the previous month.
Analysts had expected manufacturing sales to increase 1.1% in September.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.60% to hit 78.12.
The dollar was almost unchanged after the U.S. Commerce Department said retail sales rose more-than-expected in October, increasing 0.5%, while core retail sales also beat expectations, climbing 0.6%.
A separate report showed that producer price inflation in the U.S. eased more-than-expected in October, declining 0.3% compared to expectations for a 0.2% drop.
Meanwhile, the Federal Reserve Bank of New York said that manufacturing activity in the New York-region expanded for the first time in six months in November.
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