Investing.com - The dollar pushed higher against the euro on Tuesday, amid reports that the European Central Bank is looking at widening its bond purchasing scheme to include corporate debt and as upbeat U.S. home sales data eased concerns over the health of the housing market.
In a report, the National Association of Realtors said that U.S. existing home sales increased 2.4% to a 5.17 million units last month from 5.05 million in August.
Analysts had expected existing home sales to rise 1% to 5.10 million units in September.
EUR/USD declined 0.54% to 1.2730, having retreated from session highs of 1.2840.
The drop in the euro came after Reuters reported that the ECB is examining plans to purchase bonds issued by companies, or corporate debt, to help shore up growth and boost slowing inflation in the euro area.
The report said the bank could activate the new stimulus plan as soon as December and start bond purchases by early next year.
The ECB began purchasing covered bonds on Monday in a bid to increase liquidity in the region.
The euro gained ground against the dollar earlier in the session after third quarter growth data from China added to concerns over the outlook for the global economy.
China’s economy grew at an annual rate of 7.3% in the three months to September, slightly higher than the 7.2% forecast by economists, but slowing from 7.5% in the second quarter.
It was the slowest rate of growth since the first quarter of 2009, in the midst of the global financial crisis.
The lackluster data added to concerns that weaker global growth could act as a drag on the U.S. economy, dampening dollar demand.
USD/JPY slipped 0.17% to 106.76 after falling to lows of 106.26 earlier in the session.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.18% at 1.6137 and with USD/CHF gaining 0.51% to trade at 0.9476.
The commodity linked dollars were broadly higher, with AUD/USD up 0.26% to 0.8807, NZD/USD rising 0.22% to 0.7984 while USD/CAD retreated 0.51% to 1.1228.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.36% to 85.34, off lows of 84.80.