Investing.com - The dollar remained broadly higher against the other major currencies on Tuesday, as tensions between the U.S. and North Korea continued to ease and as markets were eyeing the release of U.S. data later in the day.
USD/JPY gained 0.68% to 110.39, while USD/CHF held steady at 0.9713.
Demand for the safe-haven yen and Swissie weakened after North Korea said on Tuesday it had delayed a decision on a plan to fire missiles at the U.S. Pacific territory of Guam while it watches U.S. actions a little longer.
At the same time, South Korean President Moon Jae-in said there will be no military action upon the Korean peninsula without Seoul's consent and that the government would prevent war by all means.
Market participants were also looking ahead to U.S. retail sales data, to be released later Tuesday, for further indications on the strength of the economy after disappointing inflation figures on Friday dampened expectations for another rate hike by the Federal Reserve this year.
The greenback found some support after New York Fed President William Dudley said on Monday that he favored another interest rate hike this year if the economic conditions evolved in line with his expectations.
Elsewhere, EUR/USD slipped 0.15% to 1.1761, while GBP/USD slid 0.32% to 1.2922 after data showed that Britain’s annual inflation rate unexpectedly held steady in July.
In the euro zone, data showed that German gross domestic product rose 0.6% in the second quarter, disappointing expectations for an increase of 0.7%. Year-over-year, Germany’s economy grew 0.8% in the last quarter, less than the expected growth rate of 1.9%.
The Australian dollar was weaker, with AUD/USD down 0.15% at 0.7841, while NZD/USD was almost unchanged at 0.7285.
Meanwhile, USD/CAD was little changed at 1.2729.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.22% at 93.55, the highest since August 10.