Investing.com - The dollar remained broadly lower against the other major currencies on Tuesday, as concerns over global economic growth continued to dominate market sentiment.
USD/JPY dropped 0.87% to a more than one-year low of 114.84.
The yen strengthened as Japan’s Nikkei closed down 5.4% overnight, the largest drop in three years amid mounting fears over the health of the global economy and the financial sector.
Concerns over the health of European banks prompted investors to sell financial stocks on Monday, sparking a rout in European and U.S. markets.
Trade volumes were expected to remain thin in Asia with markets in China closed for the five-day long Lunar New Year holiday.
EUR/USD rose 0.39% to trade at 1.1237.
Data earlier showed that German industrial output unexpectedly fell 1.2% in December, indicating that the region’s largest economy ended 2015 on a weak footing.
Elsewhere, the dollar edged higher against the pound, with GBP/USD down 0.12% at 1.4414 and was lower against the Swiss franc, with USD/CHF declining 0.86% to 0.9783.
The U.K. Office for National Statistics said on Tuesday that the total trade deficit widened to £10.3 billion in the fourth quarter from £8.5 billion pounds in the previous quarter, marking the biggest trade gap since the start of 2015.
The annual trade deficit widened to £34.7 billion in 2015, up from £0.3 billion in 2014.
Meanwhile, USD/CAD slipped 0.14% to 1.3907.
The Australian and New Zealand dollars were weaker, with AUD/USD down 1.42% at 0.6988 and with NZD/USD retreating 0.78% to 0.6577.
The National Australia Bank earlier reported that its business confidence index ticked down to 2 in January from 3 the previous month, in line with expectations.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.36% at 96.41.