On Tuesday the greenback edged lower versus its major rivals amid a renewed selloff in European government bond and stock markets. Euro was sent soaring
The euro was sharply higher, with EUR/USD advancing 0.97% to 1.1264, boosted by a fresh selloff in global bond
markets which dampened greenback strength.
German 10-year bund yields jumped, narrowing the gap with their U.S. counterparts.
German bund yields act as benchmarks for European financial markets and higher yields push the euro higher against the dollar. Thus yields rise as prices fall.
Earlier Tuesday, Greece repaid a €770 million loan installment to the International Monetary Fund, easing concerns that it was on the verge of default although fears over the country’s future in the euro area persisted.
GBP/USD climbed 0.57% to five-month highs of 1.5676 after data showed that U.K. industrial output grew at the fastest rate in six months in March.
Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY down 0.15% to 119.88 and with USD/CHF tumbling 1.27% to 0.9223.
The Australian and New Zealand dollars were stronger, with AUD/NZD up 1.12% to 0.7979 and NZD/USD gaining 0.78% to 0.7391.
Earlier Tuesday, the Australian Bureau of Statistics reported that home loans increased by 1.6% in March, exceeding expectations for a 1.0% rise. The change in home loans for February was revised to a 1.1% gain from a previously estimated 1.2% increase.
Meanwhile, USD/CAD slid 0.48% to trade at 1.2045.
