Investing.com - The euro dropped to two-week lows against the U.S. dollar on Tuesday, as expectations for the Federal Reserve to raise interest rates before the end of the year continued to support demand for the greenback.
EUR/USD hit 1.1148 during U.S. morning trade, the pair's lowest since September 9; the pair subsequently consolidated at 1.1148, declining 0.37%.
The pair was likely to find support at 1.1143, the low of September 6 and resistance at 1.1227, the high of September 8.
The dollar remained supported after comments by some Federal Reserve officials overnight indicated that a U.S. rate hike is still on the cards this year.
St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart indicated in separate remarks that the U.S. central bank is still likely to raise short-term interest rates this year.
Investors were looking ahead to a speech by Fed Chair Janet Yellen later in the week for additional clarity on the bank’s decision last week to leave interest rates on hold.
Elsewhere, Greek Prime Minister Alexis Tsipras, who was re-elected in a snap election on Sunday, promised on Monday to revive the struggling local economy, adding that obtaining debt relief from Greece's creditors was his first "big battle."
The euro was higher against the pound, with EUR/GBP gaining 0.42% to 0.7244.
Earlier Tuesday, the U.K. Office for National Statistics reported that public borrowing rose to £12.1 billion in August from £10.7 billion a year earlier.
It was the widest budget deficit for the month of August since 2012 and was well above economists' forecasts of 9.0 billion.
