Investing.com - The dollar rose against a basket of major currencies on Tuesday, as investors shifted focus from Trump’s healthcare bill setback to upbeat economic data and bullish comments from Federal Reserve officials.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.19% to 99.22 by 12:49 EDT.
The greenback bounce back from 4-month lows, buoyed by upbeat consumer confidence data while talk of further rate hikes from Fed officials lifted sentiment.
The Consumer Board Consumer Confidence Index, hit 125.6, far above expectations of a 114 print. Consumer confidence rose to its highest level in nearly 17 years.
Meanwhile, comments from Chicago Fed President Charles Evans and Dallas Federal Reserve Bank President Robert Kaplan on Monday, added support to the greenback as both suggested that the U.S. central bank would continue its monetary tightening cycle.
Investors continued to monitor comments from Federal Reserve officials to gauge the Fed’s willingness to hike rates, after the Fed hiked rates by 0.25% on March 15.
On Tuesday, investors will hear comments from Kansas City Fed chief Esther George and further remarks from Dallas Federal Reserve Bank President Robert Kaplan.
Elsewhere, sterling slumped to session lows against the dollar, a day ahead of the start of formal Brexit proceedings, with GBP/USD, down 0.55% to $1.2488.
Meanwhile the yen bucked the trend against a rising dollar, with USD/JPY down 0.05% at 110.60. The yen has tacked on 4% against the greenback in the last nine days.
EUR/USD fell 0.29% to $1.0832 while USD/CAD traded lower at $1.3363, down 0.10%.