By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar gained against most major rivals on Tuesday, as Europe’s lingering debt problems pushed investors toward investments perceived as less risky.
The dollar index DXY +0.06% , which measures the greenback against a basket of six other currencies, traded at 75.226, from 75.020 in late North American trading on Monday.
The dollar has gained this week, even after Friday’s release of some poor U.S. jobs data which disappointed investors hoping for signs of strength in the economy.
“The picture looks gloomy and expectations of action both by the Federal Reserve on Sept. 21 and more immediately by President Obama on Thursday have intensified,” said strategists at Credit Agricole.
Still, they said it’s unlikely that either the Fed or the president will oblige investors, and added that “all of this highlights just how ugly the U.S. dollar looks, but fortunately for the currency, the euro is looking even more unsavory.”
The euro EURUSD -0.34% fell to $1.4076, from $1.4122 on Monday.
The latest twists in Europe’s unfolding sovereign-debt drama included talks between Greece and its financial aid partners reportedly stalling late last week and weekend reports of pressure on Italy to step up austerity measures, which came ahead of a parliamentary debate scheduled for Tuesday.
“The key point is finding additional resources of around 3.5 billion euros [$4.9 billion] in order to replace the pension cuts and the high-income earners’ higher tax rate,” said the Credit Agricole strategists.
The British pound GBPUSD -0.22% slipped to $1.6094, from $1.6122 Monday, while the dollar USDJPY -0.09% bought 76.80 yen, down from ¥76.85 at the start of the week. The yen is also perceived a relative safe-haven investment.
Sarah Turner is MarketWatch's bureau chief in Sydney.
