Investing.com - The dollar inched higher against the other major currencies in subdued holiday trade on Tuesday, as demand for the greenback remained supported amid indications of an improving U.S. economy. During European morning trade, EUR/USD dipped 0.09% to 1.3685. The dollar was also higher against the yen, with USD/JPY up 0.06% to 104.17. Elsewhere, the greenback was modestly higher against the pound and Swiss franc, with GBP/USD down 0.03% to 1.6352 and USD/CHF easing up 0.08% to 0.8945. The greenback also posted modest gains against the commodity-linked currencies. The Australian, New Zealand and Canadian dollars were all lower, with AUD/USD shedding 0.22% to 0.8915, NZD/USD dipping 0.15% to 0.8187 and USD/CAD up 0.13% to 1.0625. The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.07% to 80.64. The Commerce Department said Monday that U.S. personal spending rose 0.5% last month, in line with expectations and the highest since June. The U.S. is to release data on durable goods orders later in the day, a leading indicator of production, as well as a report on new home sales. The greenback strengthened broadly last week after the Federal Reserve announced that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. Trading volumes are expected to remain light due to the Christmas holiday and as many traders already closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing the volatility.

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