Investing.com – The dollar was broadly higher against a basket of other major currencies on Tuesday, as the greenback continued to recover from the previous week’s disappointing U.S. data.
The dollar regained some strength after a recent string of soft economic data dampened optimism on the U.S. recovery, adding to uncertainty over the timing of a rate hike.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% to 98.48.
EUR/USD dropped 0.48% to 1.0686 after the ZEW Centre for Economic Research said that its index of German economic sentiment declined by 1.5 points to 53.3 this month from March’s reading of 54.8. Analysts had expected the index to improve by 0.5 points to 55.3 in April.
However, the index of euro zone economic sentiment increased to a 14-month high of 64.8 in April from 62.4 in March, above forecasts for a gain to 63.7.
The single currency also remained under pressure amid concerns that Athens is no closer to reaching an agreement on economic reforms for bailout funds with its creditors, fuelling fears that Greece could be forced out of the euro zone.
The pound was also lower, with GBP/USD down 0.15% to 1.4885.
Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.23% to 119.45 and with USD/CHF gaining 0.39% to 0.9599.
The Australian dollar was steady with AUD/USD at 0.7720 after the Reserve Bank of Australia said in the minutes of its April meeting that “it was appropriate to hold interest rates steady for the time being” but added that “further easing of policy may be appropriate over the period ahead” to bolster growth.
Meanwhile, NZD/USD rose 0.27% to 0.7181 and USD/CAD edged up 0.08% to trade at 1.2236.