Forexpros - The U.S. dollar was broadly lower against the other major currencies on Tuesday as optimism over Greece’s scheme to buy back debt underpinned market sentiment.
During European late morning trade, the dollar was trading close to six-week highs against the euro, with EUR/USD up 0.16% to 1.3075.
The single currency found support after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
Elsewhere, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.
The greenback was close to a one-month low against the pound, with GBP/USD rising 0.18% to 1.6119.
The pound remained supported after data showed that construction sector activity in the U.K. unexpectedly declined to a three month low in November.
The greenback was lower against the yen, with USD/JPY down 0.32% to 81.98, but edged higher against the Swiss franc, with USD/CHF inching up 0.11% to 0.9267.
The yen strengthened after Monday’s weak U.S. manufacturing data and ongoing concerns over the U.S. fiscal cliff enhanced the safe haven appeal of the currency.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.09% to 0.9942, AUD/USD up 0.46% to 1.0469 and NZD/USD climbing 0.40% to 0.8241.
The Australian dollar turned higher earlier after the Reserve Bank of Australia cut its benchmark interest rate to 3% from 3.25% in a widely anticipated decision.
Commenting on the decision, RBA Governor Glenn Stevens said the Australian dollar remains “higher than might have been expected” given lower export prices and a weaker global outlook.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.19% to 79.76.
European Union finance ministers were holding talks in Brussels on Tuesday, to discuss banking supervision in the euro zone.
