Forexpros – The U.S. dollar was broadly higher against its major counterparts on Tuesday, as fears over the potential impact of a default by Greece on the global economy prompted investors to shun riskier assets.
During European morning trade, the greenback edged lower against the euro, with EUR/USD easing up 0.14% to hit 1.3194.
On Monday, European finance ministers postponed a decision on the release of Greece’s next tranche of aid until a meeting on October 17. The ministers were to meet in Brussels later Tuesday, to discuss the implementation of a permanent euro zone bailout facility.
The euro remained supported amid speculation that the European Central Bank was buying Spanish and Italian government bonds.
The greenback was higher against the pound, with GBP/USD down 0.25% to hit 1.5392.
Earlier in the day, data showed that construction activity in the U.K. fell to a 10-month low in September, as demand in the housing sector remained sluggish.
Elsewhere, the greenback was almost unchanged against the yen but slipped against the Swiss franc with USD/JPY inching up 0.01% to hit 76.61 and USD/CHF sliding 0.15% to hit 0.9201.
Japan’s Finance Minister Jun Azumi reiterated a warning against speculators pushing the yen too high earlier, saying the recent moves by the euro against the yen were excessive.
Meanwhile, the greenback was up against its Canadian, Australian and New Zealand cousins, with USD/CAD easing up 0.09% to hit 1.0553, AUD/USD tumbling 0.76% to hit 0.9452 and NZD/USD dipping 0.07% to hit 0.7522.
The Reserve Bank of Australia said earlier that it was leaving interest rates unchanged at 4.75%, in light of the “very unsettled conditions in global financial markets.”
Elsewhere, official data showed that Australian building approvals rose much more-than-expected in August, jumping 11.4%, far more than the forecast 1.1% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12% to hit 80.20.
Later in the day, the U.S. was to release official data on factory orders, while Federal Reserve Chairman Ben Bernanke was to testify to the Joint Economics Committee in Washington.
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