Investing.com – The U.S. dollar was higher against all of its major rivals on Tuesday, after industry data showed that activity in the U.S. service sector expanded unexpectedly last month and after the Swiss National Bank took action to weaken the franc.
During U.S. morning trade, the greenback was sharply higher against the Swiss franc, with USD/CHF leaping 8.81% to hit 0.8563.
Earlier Tuesday, the SNB set a minimum exchange rate target of 1.20 per euro for the Swiss franc and said it was prepared to defend this level by purchasing foreign currency in unlimited quantities.
The central bank said the massive overvaluation of the franc posed an acute threat to the Swiss economy and carried a risk of deflation.
The announcement came after official data showed that Swiss consumer price inflation fell 0.3% in August, after dropping by 0.8% the previous month, surpassing expectations for a 0.2% decline.
The Swissie was also down sharply against the euro, with EUR/CHF jumping 8.34% to hit 1.2022.
Elsewhere, the greenback was up against the euro, with EUR/USD shedding 0.37% to hit 1.4044.
The single currency remained under pressure amid worries that the region’s sovereign debt crisis is deepening.
Meanwhile, official data showed that German factory orders fell significantly more-than-expected in July, dropping for the first time in four months on the back of a decline in export demand.
The greenback was higher against the pound and the yen, with GBP/USD falling 0.70% to hit 1.6006 and USD/JPY climbing 0.31% to hit 77.12.
In addition, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.10% to hit 0.9915, AUD/USD shedding 0.28% to hit 1.0519 and NZD/USD tumbling 0.82% to hit 0.8252.
The Reserve Bank of Australia left its interest rate on hold at 4.75% earlier and indicated that rates are likely to remain on hold in the coming months amid concerns over the outlook for global growth.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, advanced 0.72% to hit 75.75.
Earlier Tuesday, the Institute for Supply Management said its U.S. services index rose to 53.3 last month from 52.7 in July, confounding expectations for a decline to 51.0.
A reading above 50 indicates expansion in the sector.
During U.S. morning trade, the greenback was sharply higher against the Swiss franc, with USD/CHF leaping 8.81% to hit 0.8563.
Earlier Tuesday, the SNB set a minimum exchange rate target of 1.20 per euro for the Swiss franc and said it was prepared to defend this level by purchasing foreign currency in unlimited quantities.
The central bank said the massive overvaluation of the franc posed an acute threat to the Swiss economy and carried a risk of deflation.
The announcement came after official data showed that Swiss consumer price inflation fell 0.3% in August, after dropping by 0.8% the previous month, surpassing expectations for a 0.2% decline.
The Swissie was also down sharply against the euro, with EUR/CHF jumping 8.34% to hit 1.2022.
Elsewhere, the greenback was up against the euro, with EUR/USD shedding 0.37% to hit 1.4044.
The single currency remained under pressure amid worries that the region’s sovereign debt crisis is deepening.
Meanwhile, official data showed that German factory orders fell significantly more-than-expected in July, dropping for the first time in four months on the back of a decline in export demand.
The greenback was higher against the pound and the yen, with GBP/USD falling 0.70% to hit 1.6006 and USD/JPY climbing 0.31% to hit 77.12.
In addition, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.10% to hit 0.9915, AUD/USD shedding 0.28% to hit 1.0519 and NZD/USD tumbling 0.82% to hit 0.8252.
The Reserve Bank of Australia left its interest rate on hold at 4.75% earlier and indicated that rates are likely to remain on hold in the coming months amid concerns over the outlook for global growth.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, advanced 0.72% to hit 75.75.
Earlier Tuesday, the Institute for Supply Management said its U.S. services index rose to 53.3 last month from 52.7 in July, confounding expectations for a decline to 51.0.
A reading above 50 indicates expansion in the sector.