(RTTNews) - The dollar kept pressure on its European rivals Tuesday, jumping to a fresh 8-month peak against the euro ahead of closely-watched Congressional testimony from Fed Chairman Ben Bernanke.
Headlines from Europe continued to support the dollar. A plan to help Greece meet its sovereign debt obligations has run into another snag -- Greek officials admit that are behind on austerity targets.
There is a high risk of the Greek program going 'off-track', Sweden's Finance Minister Anders Borg told reporters in Luxembourg on Tuesday as he arrived to attend the Economic and Financial Affairs Council (ECOFIN) meeting. "
The dollar rose to $1.3144 versus the euro before leveling off near $1.32. Steady gains have helped the dollar pick up about ten cents in the past month.
Reflecting a slowdown in energy prices, Eurozone factory gate inflation eased in August, but at a slower than expected pace.
Producer prices increased at a slower pace of 5.9 percent year-on-year in August, following the 6.1 percent rise logged in July, data from Eurostat showed Tuesday.
The dollar also approached a recent yearly high versus the sterling, rising to $1.5375 from near $1.55.
British construction sector activity slowed in September to reach levels close to stagnation, a survey by Markit Economics showed Tuesday.
The Markit/Chartered Institute of Purchasing & Supply (CIPS) purchasing managers' index fell to 50.1 in September from 52.6 in August.
A new yearly high was reached versus its Canadian counterpart, with the dollar jumping above C$1.0550 for the first time since August 2010.
On the other hand, there was virtually no movement versus the yen. The buck has been in a coma just above Y76 since hitting a record low 75.94 in August.
On the economic front, the Commerce Department is due to release its report on factory goods orders for August at 10 am ET. Economists estimate a 0.3 percent drop in orders for factory goods.
Federal Reserve Chairman Ben Bernanke is due to offer Congressional testimony on the U.S. economy this morning.
