Forexpros – The U.S. dollar was down against all of its major counterparts on Tuesday, as the euro pushed higher, finding support after a report showed that German business confidence improved unexpectedly this month.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.35% to hit 1.3045.
German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 107.2 in December from 106.6 in November, confounding expectations for a decline to 106.0.
But the single currency’s gains looked likely to be limited amid doubts over the handling of the ongoing debt crisis in the region.
On Monday, European Union finance ministers agreed to provide EUR150 billion in loans to the International Monetary Fund, falling short of the EUR200 billion target.
Also Monday, European Central Bank President Mario Draghi reiterated that the bank’s bond purchasing program was temporary and “not infinite” and said the euro zone economy was likely to enter a recession by early next year.
The greenback was also down against the pound, with GBP/USD surging 0.73% to hit 1.5612.
In the U.K., a report by the Nationwide Building Society showed that its index of consumer confidence recovered from October’s record low last month but remained subdued amid concerns over unemployment and inflation levels.
The greenback was lower against the yen and the Swiss franc, with USD/JPY shedding 0.20% to hit 77.88 and USD/CHF sliding 0.29% to hit 0.9344.
Official data showed earlier that Switzerland’s trade surplus widened more-than-expected in November.
In addition, the greenback was lower against its Canadian, Australian and New Zealand cousins, with USD/CAD down 0.43% to hit 1.0342, AUD/USD rallying 0.86% to hit 0.9982 and NZD/USD advancing 0.79% to hit 0.7615.
The Aussie’s gains came after the minutes of the Reserve Bank of Australia’s December 6 meeting showed that policymakers saw continued expansion in the domestic economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15% to hit 80.82.
Later in the day, Spain was due to auction three- and six-month government bonds, while the U.S. was to publish official data on building permits as well as a report on housing starts.
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