Forexpros – The U.S. dollar was higher against it major counterparts on Tuesday, as safe haven demand for the greenback remained supported by concerns over the deepening crisis in the euro zone.
During European morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.21% to hit 1.2791.
Sentiment on the euro remained fragile ahead of Wednesday’s European Union summit, amid concerns over a divide between France’s new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
President Hollande was expected to propose the introduction of joint euro bonds at the summit, but Germany has repeatedly resisted the idea, arguing they would lessen pressure for heavily indebted countries to get their finances in order.
The greenback was also up against the pound, with GBP/USD losing 0.21% to hit 1.5800.
In the U.K., official data showed that consumer price inflation eased to a two-year low of 3% in April, down from 3.5% the previous month, and below expectations for a reading of 3.1%
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY rising 0.39% to hit 79.61 and USD/CHF adding 0.19% to hit 0.9389.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching down 0.08% to hit 1.0215, AUD/USD dipping 0.06% to hit 0.9909 and NZD/USD sliding 0.20% to hit 0.7637.
Earlier Tuesday, official data showed that second quarter inflation expectations in New Zealand ticked down to 2.4%, from 2.5% in the three months to March, dampening expectations for a rate hike by the country’s central bank in the coming months.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19%, to trade at 81.25.
Later in the day, the U.S. was to release industry data on existing home sales.
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