The US dollar remained mixed against its currency counterparts on Tuesday\u2019s trading session. The Greenback however strongly advanced versus the British Pound on the lower than expectations UK\u2019s economic data.<\/p>\n
United Kingdom\u2019s gross domestic product fell by 0.5 percent for the fourth quarter as compared to the prior quarter. An unexpected decline in Britain\u2019s GDP created uncertainty among investors about the country\u2019s economic outlook.<\/p>\n
In opinion of the experts UK is already dealing with an inflation rate of 4 percent which has resulted in more tightened fiscal policy. The combination of lower interest rates, rising inflation and lower GDP growth rate is highly unsupportive for the currency.<\/p>\n
The British Pound declined to 1.5816 versus the US dollar on Tuesday\u2019s North American trading session as compared to $1.6003 on Monday.<\/p>\n
The Euro remained strong versus the greenback and reached its highest in two months to 1.3702 however settled to $1.3682 later in trading session as compared to $1.3647 on Monday. Despite strong US consumer confidence the greenback remained under pressure versus the single currency as the successful action of European Rescue Fund bonds boosted investors\u2019 confidence in euro zone\u2019s economy. The Euro also advanced 1.3 percent against the British Pound.<\/p>\n
The dollar index DXY which measures the US dollar\u2019s movement against its six major rivals declined to 77.973 as compared to 78.013 on Monday\u2019s late trading session.<\/p>\n
The US dollar also declined versus the Japanese Yen to 82.23 as compared to 82.54 on Monday\u2019s late trading session. The traders were remained optimistic as the Central Bank of Japan decided to keep its key overnight call rate around 0 to 0.1 percent as expected.<\/p>\n
The dollar also extended losses against the Japanese yen as Treasury yields fell, weighing on the index.<\/p>\n