Forexpros — The U.S. dollar was broadly lower against its major counterparts on Tuesday, as risk appetite staged a modest recovery but concerns over sovereign debt contagion in the euro zone lingered.
During European morning trade, the greenback was weaker against the euro, with EUR/USD climbing 0.52% to hit 1.4186.
Investors remained cautious ahead of a meeting of euro zone leaders in Brussels later in the week to discuss a second bailout for Greece and the overall financial stability of the single currency bloc.
The greenback was also lower against the pound, with GBP/USD rising 0.49% to hit 1.6137.
Meanwhile, the greenback was almost unchanged against the yen and crept higher against the Swiss franc, with USD/JPY dipping 0.02% to hit 79.02 and USD/CHF gaining 0.36% to hit 0.8204.
Earlier Tuesday, Bank of Japan Deputy Governor Hirohide Yamaguchi warned over the impact that the yen’s recent gains could have Japan’s economic recovery and reiterated the bank’s readiness to intervene in currency markets.
Elsewhere, the greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.50% to hit 0.9549, AUD/USD advancing 0.61% to hit 1.0671 and NZD/USD climbing 0.61% to hit 0.8500.
The minutes of the Australian Reserve Bank’s July policy meeting showed earlier that policymakers believed there was “more time” to assess price pressures, dampening expectations that the bank will tighten policy for some time to come.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.43%.
Later Tuesday, the U.S. was to publish government data on building permits and housing starts.
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