Euro climbs vs dollar, as investors expect economic reports from euro zone

On Tuesday the euro was higher against the dollar, while markets eyed upcoming reports on German consumer sentiment and the euro zone inflation and as sentiment on the greenback was fragile after a string of downbeat U.S. data.

EUR/USD hit 1.0599 during late Asian trade, the session high; the pair subequently consolidated at 1.0592, adding 0.23%. The pair was likely to find support at 1.0456, Monday's low and a 12-year low and resistance at 1.0683, the high of March 12.

Official data issued on Monday indicated that U.S. industrial production climbed just 0.1% in February, contrasting with analysts' expectations for a 0.2% gain, while manufacturing output dipped 0.1%.

Separate data showed that manufacturing activity growth in New York State slowed in March for a second straight month as new orders fell. The report came after the U.S. Department of Labor said on Friday that producer prices fell 0.5% last month, while the University of Michigan said that its consumer sentiment index fell to a four-month low this month.

In the meantime, the euro was backed after Italy's central bank governor expressed concerns on Monday over that the pace of the currency's fall since the ECB launched its trillion-euro quantitative easing program early last week, adding that there were risks the program could overshoot its goal, as well as fuel an excessive rise in asset prices.

The common currency was also higher against the pound, with EUR/GBP edging up 0.18% to 0.7138.

Later on Tuesday, the ZEW Institute is expected to issue a report on German economic sentiment, as well as revised data on consumer inflation.

The U.S. is expected to report on building permits and housing starts.