Investing.com - The dollar continued to hover at three-week lows against other major currencies on Tuesday, still pressured by a stronger euro and as investors were eyeing an upcoming U.S. inflation report due later in the day.
Uncertainty over the fate of a major U.S. tax overhaul continued to weigh on the greenback despite the previous session's upbeat data.
Data on Tuesday showed that U.S. producer prices increased by 0.4% in October, exceeding expectations for a 0.1% uptick.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% at 93.48 by 05:15 a.m. ET (09:15 GMT), the lowest since October 26.
EUR/USD was up 0.29% at 1.1842, the highest since October 20, while GBP/USD eased 0.09% to trade at 1.3155.
The euro remained broadly supported after solid euro zone growth data on Tuesday offered further evidence that the region’s economic recovery remains on track, supporting the European Central Bank's move to begin reducing its bond-buying program.
Last month the ECB said it would keep its bond buying program in place late into next year but reduce the size of its monthly purchases, a policy shift signaling it is on track to eventually raising interest rates.
In the UK, data showed that wage growth remained sluggish, while the unemployment rate remained steady at a 42-year low in September.
Elsewhere, USD/JPY dropped 0.57% to 112.80, while USD/CHF slid 0.30% to 0.9864.
Data earlier showed that Japan's economy grew faster than expected in the third quarter thanks to strong exports, posting the longest period of uninterrupted growth in more than a decade.
The Australian dollar was weaker, with AUD/USD down 0.52% at 0.7590, while NZD/USD rose 0.26% to 0.6892.
Meanwhile, USD/CAD edged down 0.09% to trade at 1.2722.