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Dollar hits session lows vs. euro, pound

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Investing.com - The dollar hit session lows against the euro and the pound on Tuesday after better-than-expected services PMI data, while the Australian dollar was higher after the Reserve Bank of Australia kept rates on hold.

During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.32% to 1.3067.

Data showed that Germany's services purchasing managers' index rose to 54.7 in February, up from a preliminary reading of 54.1. The final French services PMI came in at 43.7, better than a preliminary estimate of 42.7.

The final euro zone services PMI rose to 47.9 from a preliminary reading of 47.3.

The euro remained under pressure amid concerns that Italy will be unable to pass structural reforms and austerity measures as the country edged closer to fresh elections after inconclusive elections last week.

The dollar hit session lows against the pound, with GBP/USD rising 0.39% to 1.5171 after data showed that the U.K. services PMI unexpectedly rose to a five-month high of 51.8 from 51.5 in January. Economists had expected the services PMI to slip to 51.0 last month.

Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.39% to 93.10. The dollar remained supported as expectations for more aggressive easing measures by the Bank of Japan remained intact.

The greenback edged lower against the Swiss franc with USD/CHF slipping 0.10% to 0.9396.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.08% to 1.0263, AUD/USD rising 0.39% to 1.0232 and NZD/USD inching up 0.07% to 0.8281.

Earlier Tuesday, the RBA left rates on hold at 3%, saying that the bank's current monetary policy is appropriate.

The announcement came after official data showed that retail sales in Australia rose 0.9% in January, more than the expected 0.4% increase, after a 0.4% decline the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35% to 81.98.

The euro zone was to release official data on retail sales later Tuesday, while the Institute of Supply Management was to release a report on U.S. service sector activity.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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