The US dollar posted slight gains on Tuesday versus its major counterpart currencies as investors got a bit optimistic about the single currency on expectations of increase in key interest rates by European Central Bank.
The dollar index DXY which measures the US dollar’s performance versus its six major rival currencies gained to 77.784 on Tuesday as compared to 77.739 on Monday’s European trading session. The dollar index moved up to 78.326 in yesterday’s Asian trading session however later settled around 77.578.
The Euro surged to 1.3705 versus the US dollar but later on settled to 1.3661 as compared to 1.3666 on Monday. The single currency along with Swiss franc remained strong due to remarks of Mersch supporting tightened monetary policy by European Central Bank.
Swiss Franc moved mainly on the political unrest in Libya which has resulted in soaring oil prices making investors shift their focus away from the greenback.
The Pound Sterling also plunged to 1.6141 versus the US dollar on Tuesday as compared to 1.6221 on Monday.
The US dollar remained under selling pressure versus some currencies despite the latest data of US home price which declined in December as per wide expectations. The US dollar declined versus the Japanese Yen to 82.74 on Tuesday as compared to 83.18 on Monday.
The New Zealand dollar plummeted due to major earthquake which killed more than 60 persons and almost destroyed Christchurch, New Zealand second largest city. The US dollar surged 2.2 percent versus the New Zealand currency to 1.3392 on Tuesday. Australian dollar also gained 0.5 percent to 1.3365 against New Zealand dollar however declined 0.9 percent to 99.78 versus the greenback.
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Daily forex trading news written by Rehan from DailyForexTrade.com
