Investing.com - The dollar was hovering close to nine-year highs against the other major currencies on Tuesday, ahead of highly anticipated U.S. third quarter growth data and as expectations for a U.S. rate hike by next year continued to lend broad support to the greenback.
Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.
The dollar remained broadly supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was steay at 89.90, close to the session high of 89.97, the highest level since November 2005.
EUR/USD held steady, near two-year lows at 1.2236.
Earlier Tuesday, official data showed that French consumer spending rose 0.4% in November, beating expectations for a 0.3% gain. French consumer spending fell 0.8% in October, whose figure was revised from a previously estimated 0.9% decline.
Another report showed that France's economy grew by 0.3% in the third quarter, in line with expectations and unchanged from the previous quarter's growth rate.
The pound hit fresh 15-month lows against the dollar, with GBP/USD down 0.10% to 1.5574.
In a report, the Office for National Statistics said the U.K. current account deficit widened to £27.0 billion in the third quarter from £24.3 billion in the second quarter, whose figure was revised from a previously estimated deficit of £23.1 billion.
A separate report showed that U.K. gross domestic product rose 0.7% in the third quarter, in line with expectations and down from a 0.8% growth rate in the three months to June.
Year-on-year, the U.K. economy grew at a rate of 3.6% in the last quarter, above expectations for growth of 3.0% and unchanged from the second quarter's revised rate, which had initially been estimated at 3.0%.
In addition, the British Bankers' Association reported that mortgage approvals rose by £36,700 in November, after an increase of £37,200 in October, whose figure was revised from a previously estimated £37,100 gain.
USD/CHF slipped 0.10% to 0.9830, but remained within close distance of a two-and-a-half year high of 0.9851 hit on Monday. Meanwhile, the yen was little changed, hovering close to two-week lows, with USD/JPY at 120.11.
The Russian ruble was higher against the dollar, with USD/RUB down 2.15% to 54.66, as it continued to gain support ahead of major month-end tax payments in Russia.
The ruble hit record lows last week after a surprise interest rate hike failed to ease selling pressure on the currency from falling oil and western sanctions.
The Australian dollar was steady, near four-and-a-half year lows, with AUD/USD at 0.8126, while NZD/USD rose 0.27% to trade at 0.7749 after data showed that New Zealand's trade deficit narrowed far more-than-expected to NZ$213 million last month from NZ$911 million in October.
Meanwhile, USD/CAD edged down 0.15% to 1.1617 ahead of highly anticipated report on Canada's October GDP.
Later in the day, the U.S. was to release final third-quarter GDP data, as well as on core durable goods orders and new home sales.