Forex Pros – The U.S. dollar remained broadly higher against its major counterparts on Tuesday, supported by increased safe haven demand amid fears over reprisals from Islamic militants following Sunday’s killing of Osama bin Laden.
During European afternoon trade, the greenback was higher against the euro, with EUR/USD shedding 0.28% to hit 1.4787.
Earlier Tuesday, official data showed that European producer price inflation rose in line with expectations in April.
The greenback was also up against the pound, with GBP/USD plunging 1.02% to hit 1.6483.
Official data showed earlier that manufacturing activity in the U.K. fell more-than-expected in April to hit a seven-month low.
Elsewhere, the greenback was down against the yen but up against the Swiss franc with USD/JPY shedding 0.61% to hit 80.71 and USD/CHF easing up 0.10% to hit 0.8660.
Elsewhere, the greenback was broadly higher against its Canadian, Australian and New Zealand cousins, with USD/CAD rising 0.27% to hit 0.9531, AUD/USD tumbling 0.76% to hit 1.0860 and NZD/USD falling 0.70% to hit 0.8005.
Earlier in the day, the Reserve Bank of Australia held the overnight cash rate at 4.75%, indicating that the record strength of the Australian dollar will contain consumer prices until late this year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19%.
Later Tuesday, the U.S. was to release government data on factory orders.
ForexPros.com
