Dollar mostly higher vs. rivals as global concerns persist

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Investing.com - The dollar was mostly higher against the other major currencies on Tuesday, as concerns over tension in Ukraine and ongoing violence in the Gaza Strip continued to support safe haven demand.

EUR/USD shed 0.27% to 1.3487, as tensions between Russia and the West remained high in the wake of the downing of a Malaysian airliner in eastern Ukraine late last week, while Israel's ground offensive in Gaza was also in focus.

Markets turned their attention to a meeting of euro zone foreign ministers later on Tuesday to discuss further sanctions against Russia.

Separately, hopes for a ceasefire in Gaza mounted after U.S. Secretary of State John Kerry and United Nations chief Ban Ki Moon arrived in Cairo for talks aimed at stopping the violence.

The euro also remained under pressure after recent comments by European Central Bank President Mario Draghi were seen as the latest sign that the bank is open to further monetary easing measures to stave off the risk of deflation in the euro area.

In contrast, Federal Reserve Chair Janet Yellen indicated last week that interest rates may rise sooner if the economy continues to improve.

The pound was steady against the dollar, with GBP/USD down 0.06% to 1.7065.

Official data showed that U.K. public sector net borrowing rose by £9.5 billion in June, after an increase of £11.9 billion in May, whose figure was revised from a previously estimated £11.5 billion.

Analysts had expected public sector net borrowing to rise by £10.3 billion last month.

The dollar was higher against the yen and the Swiss franc, with USD/JPY edging up 0.09% to 101.48 and with USD/CHF rising 0.35% to 0.9011.

Official data earlier showed that Switzerland's trade surplus narrowed to 1.38 billion Swiss francs last month, from 2.85 billion Swiss francs in May, whose figure was revised up from a previously estimated surplus of 2.77 billion Swiss francs.

Analysts had expected the trade surplus to expand to 2.97 billion Swiss francs in June.

The dollar was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD adding 0.15% to 0.9388 and NZD/USD down 0.22% to 0.8671, while USD/CAD inched up 0.06% to 1.0744.

Speaking at a conference in Sydney, Reserve Bank of Australia Governor Stevens earlier said he is content with the current monetary policy setting and stands ready to do more if needed.

The Aussie had come under broad selling pressure earlier in the month, when Mr. Stevens warned investors that they were underestimating the risk of a significant fall in the currency.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.19% to 80.77.

Later in the day, the U.S. was to release reports on consumer price inflation and existing home sales.

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This article appears in: Investing , Forex and Currencies

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