Investing.com - The dollar broadly higher against the other major currencies on Tuesday amid expectations that that U.S. economic data due for release later in the day would indicate that the economic recovery is on track.
During European morning trade, the dollar moved higher against the yen, with USD/JPY climbing 0.87% to 97.74.
The dollar was bolstered by expectations that U.S. retail sales data would reinforce the view that the economic recovery strong enough for the Federal Reserve to begin phasing out its asset purchase program later this year.
The yen came under pressure following reports that Japan’s Prime Minister Shinzo Abe is looking at lowering the corporate tax rate as a way to offset a planned increase in sales tax.
Meanwhile, Japan's core machinery orders fell 2.7% in June from the previous month, government data showed Tuesday, less than expectations for a decline of 7.2%.
Elsewhere, the dollar was steady against the euro and the pound, with EUR/USD dipping 0.04% to 1.3294 and GBP/USD edging up 0.02% to 1.5467.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday.
The dollar gained ground against the Swiss franc, with USD/CHF climbing 0.23% to 0.9278.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD sliding 0.15% to 0.9133, NZD/USD losing 0.19% to trade at 0.7994 and USD/CAD rising 0.16% to 1.0320.
In Australia, a report showed that the National Australia Bank’s business confidence index fell to minus 3 in July from a reading of zero the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was 0.21% higher at 81.58.
