On Tuesday the greenback edged higher against a basket of other major currencies, as markets anticipated congressional testimony by
Federal Reserve Chair Janet Yellen later in the day.
EUR/USD dipped 0.07% to 1.1327 from 1.1333 late Monday.
The single currency was not impacted by official data showing that euro zone consumer price inflation fell 0.6% last month, in line with expectations and unchanged from a preliminary estimate. Euro zone inflation declined by 0.2% in December. The rate remains is steadily below the European Central Bank's target of near but just below 2%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 0.6% in January, thus meeting forecasts. The figure was unchanged from an initial forecast.
Greece delivered a list of proposed economic reforms to Brussels earlier Tuesday after missing Monday’s midnight deadline. The reforms must now be approved by the country’s lenders in order for Greece to secure a four-month bailout extension.
Investors were looking ahead to testimony by Fed Chair Janet Yellen before the Senate Banking Committee in Washington later in the day for any indication on when U.S. interest rates may start to rise.
The pair GBP/USD slipped 0.23% to 1.5420 in other trade. Sterling remained supported after Bank of England policymaker Martin Weale said earlier that the central bank could start raising interest rates sooner than markets anticipate.
The kiwi dollar was steeply lower, with NZD/USD tumbling 1.05% to 0.7447, while AUD/USD dropped 0.55% at 0.7760.
The loonie was also weaker, with USD/CAD advancing 0.46% to 1.2631 after recent weak economic reports were seen as increasing the likelihood of another rate cut by Canada’s central bank.
The dollar rose against the yen, with USD/JPY rising 0.60% to 119.52, while USD/CHF was little changed near five-week highs at 0.9496.
