Forexpros - The U.S. dollar was broadly lower against its major
counterparts on Tuesday, as the euro strengthened on the back of a
rebound in equities and easing euro zone peripheral bond yields.
During U.S. morning trade, the greenback was weaker against the
euro, with EUR/USD climbing 0.58% to hit 1.4192.
The single currency found support as yields on Italian and Spanish
government bonds retreated slightly after rising sharply in the
previous session amid fears over sovereign debt contagion.
The greenback was also lower against the pound, with GBP/USD rising
0.49% to hit 1.6136.
In addition, the greenback slipped against the yen but climbed
against the Swiss franc, with USD/JPY sliding 0.11% to hit 78.94
and USD/CHF rising 0.31% to hit 0.8200.
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 to stem the currency's gains.
Meanwhile, the greenback was broadly lower against its Canadian,
Australian and New Zealand counterparts, with USD/CAD tumbling
0.97% to hit 0.9503, AUD/USD advancing 0.88% to hit 1.0702 and
NZD/USD rallying 1.32% to hit 0.8560.
The Bank of Canada left its benchmark interest rate unchanged at
1.0% in a widely expected decision earlier, but signaled that it
could raise rates in the near-term to curb accelerating inflation.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.52%.
Also Tuesday, official data showed U.S. housing starts rose
more-than-expected in June to touch a six-month high, while permits
for future construction unexpectedly increased.