Greenback rises broadly vs. rivals in risk-off commerce

© Reuters. Dollar gains ground vs. other majors as risk sentiment wanes

Investing.com – The dollar rose broadly against the other major currencies on Tuesday, as dowbeat euro zone inflation data, concerns over Chinese growth and mounting tensions in the Middle East dampened risk sentiment.

was down 0.50% at 1.0777.

The single currency weakened after Eurostat reported that t rose just 0.2% in December, matching November’s reading and falling short of forecasts for an increase of 0.3%.

, which strips out food and energy costs rose 0.9% in December, below forecasts for 1.0% and matching November’s reading.

The weak data added to pressure on the European Central Bank to step up measures to bolster price and economic growth in the single currency bloc. The ECB targets annual inflation of close to, but just below 2%.

Earlier Tuesday, Germany’s Federal Statistics Office said decreased by 14,000 last month, better than expectations for a drop of 6,000.

held steady at a record low of 6.3% in December, in line with expectations.

slid 0.35% to 119.03.

Demand for the safe-haven yen persisted after data on Monday showed that fell to 48.2 this month from 48.6 in December.

It was the lowest reading since September and was well below the 50-point level which separates expansion from contraction.

Markets were also jittery amid concerns over growing tensions in the Middle East after Saudi Arabia executed a prominent Shi’ite cleric, prompting a retaliatory attack on the Saudi embassy in Iran.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with down 0.26% at 1.4676 and with gaining 0.50% to 1.0072.

Markets shrugged off data showing that the rose to 57.8 from November’s 55.3 and ahead of forecasts for a reading of 56.0.

The Australian and New Zealand dollars were weaker, with down 0.24% at 0.7173 and with retreating 0.73% to 0.6704.

Meanwhile, slipped 0.11% to trade at 1.3935.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.38% at 99.31.

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Greenback rises broadly vs. rivals in risk-off commerce