The dollar was higher against the euro and the yen on Tuesday as
investors looked ahead to policy meetings by the European Central Bank
and the Bank of Japan later in the week.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.10% to 1.2835.
In the euro zone, a string of weak data fuelled doubts over the strength of the region’s recovery in the first quarter, while concerns over the potential implications of a bailout for Cyprus also weighed.
Official data showed that the euro zone unemployment rate rose to an all-time high of 12% in February compared with an original estimate of 11.9% for January, which was revised up to 12%.
A separate report showed that the euro zone’s manufacturing purchasing managers’ index ticked up to 46.8 in March, from a final reading of 46.6 the previous month, still substantially below the 50 mark that separates growth from contraction.
Germany’s manufacturing PMI dropped back into contraction territory, falling to 49 in March from a final reading of 50.3 in February, as new orders fell.
The ECB was not expected to announce any changes to monetary policy following Thursday’s meeting, but investors were awaiting comments from President Mario Draghi at the bank’s post-policy meeting press conference.
The dollar pulled back from five-week lows against the yen, with USD/JPY rising 0.29% to 93.51, up from session lows of 92.57.
The yen remained under pressure as expectations for more aggressive easing measures by the BoJ under new Governor Haruhiko Kuroda remained intact ahead of the outcome of the bank’s policy meeting on Thursday.
The dollar hit session highs against the pound, with GBP/USD dropping 0.74% to 1.5119.
Sterling fell after data showed that the U.K. manufacturing PMI rose to 48.3 in March from 47.9 in February, but came in below expectations for a reading of 48.5.
The weak data added to fears over the risk of a triple-dip recession and fuelled expectations that the Bank of England could restart its asset purchase program as soon as this week.
The dollar edged higher against the Swiss franc, with USD/CHF advancing 0.24% to 0.9487.
In Switzerland, a report showed that the SVME manufacturing PMI dropped to 48.3 in March, from 50.8 in February, missing expectations for a reading of 50.2.
The greenback was weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.10% to 1.0155, AUD/USD rising 0.35% to 1.0457 and NZD/USD climbing 0.69% to 0.8427.
Earlier Tuesday the Reserve Bank of Australia left rates on hold at 3.0% in a widely expected decision and said that previous rate cuts were beginning to have an expansionary effect on the economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 83.03.
In the U.S., official data showed that factory orders rose 3.0% in February, slightly above expectations for an increase of 2.9%.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.10% to 1.2835.
In the euro zone, a string of weak data fuelled doubts over the strength of the region’s recovery in the first quarter, while concerns over the potential implications of a bailout for Cyprus also weighed.
Official data showed that the euro zone unemployment rate rose to an all-time high of 12% in February compared with an original estimate of 11.9% for January, which was revised up to 12%.
A separate report showed that the euro zone’s manufacturing purchasing managers’ index ticked up to 46.8 in March, from a final reading of 46.6 the previous month, still substantially below the 50 mark that separates growth from contraction.
Germany’s manufacturing PMI dropped back into contraction territory, falling to 49 in March from a final reading of 50.3 in February, as new orders fell.
The ECB was not expected to announce any changes to monetary policy following Thursday’s meeting, but investors were awaiting comments from President Mario Draghi at the bank’s post-policy meeting press conference.
The dollar pulled back from five-week lows against the yen, with USD/JPY rising 0.29% to 93.51, up from session lows of 92.57.
The yen remained under pressure as expectations for more aggressive easing measures by the BoJ under new Governor Haruhiko Kuroda remained intact ahead of the outcome of the bank’s policy meeting on Thursday.
The dollar hit session highs against the pound, with GBP/USD dropping 0.74% to 1.5119.
Sterling fell after data showed that the U.K. manufacturing PMI rose to 48.3 in March from 47.9 in February, but came in below expectations for a reading of 48.5.
The weak data added to fears over the risk of a triple-dip recession and fuelled expectations that the Bank of England could restart its asset purchase program as soon as this week.
The dollar edged higher against the Swiss franc, with USD/CHF advancing 0.24% to 0.9487.
In Switzerland, a report showed that the SVME manufacturing PMI dropped to 48.3 in March, from 50.8 in February, missing expectations for a reading of 50.2.
The greenback was weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.10% to 1.0155, AUD/USD rising 0.35% to 1.0457 and NZD/USD climbing 0.69% to 0.8427.
Earlier Tuesday the Reserve Bank of Australia left rates on hold at 3.0% in a widely expected decision and said that previous rate cuts were beginning to have an expansionary effect on the economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 83.03.
In the U.S., official data showed that factory orders rose 3.0% in February, slightly above expectations for an increase of 2.9%.
