Investing.com - The euro edged higher against the dollar on Tuesday after Federal Reserve officials played down fears over an imminent end to the central bank’s stimulus program.
EUR/USD hit 1.3137 during late Asian trade, the session high; the pair subsequently consolidated at 1.3134, edging up 0.12%.
The pair was likely to find support at 1.3058, Monday’s low and an almost three-week low and resistance at 1.3175.
On Monday, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said the central bank was committed to continuing its bond purchase program until the U.S. unemployment rate falls further.
Dallas Fed President Richard Fisher also downplayed market jitters over tapering as overdone.
The comments came after Fed Chairman Ben Bernanke said last week that the bank could begin slowing asset purchases by the end this year if the economy continues to pick up.
Safe haven demand for the dollar continued to be underpinned amid sustained fears over financial stability in China, which saw Chinese equities post their largest daily decline in nearly four years on Monday.
The euro was steady against the pound, with EUR/GBP dipping 0.01% to 0.8498 and was lower against the yen, with EUR/JPY down 0.17% to 128.00.
The U.S. was to release official data on durable goods orders and reports on home sales and consumer confidence later in the trading day.
