The dollar was back at $1.30 versus the euro for the first time since mid-September Tuesday morning, strengthened by lingering concerns the major debt problems could split the European Union.
With analysts saying that Germany and other competitive euro area members in the north will grow weary of supporting their profligate neighbors to the south, many are fearing days of the monetary union may be numbered.
The world has turned its attention to debt-ridden Spain and Portugal after the European Union managed to bail out Ireland.
The dollar hit a 2-month high of $1.2978 versus the euro, back toward this summer’s 4-year peak of $1.1805.
Eurozone annual inflation remained near a 2-year high in November. Despite recent economic momentum, the jobless rate in the currency bloc exceeded 10% in October to reach the highest level since mid-1998.
Inflation remained at 1.9% in November, a flash estimate from the European Union statistical office Eurostat showed Tuesday.
The buck also touched a 2-month peak of $1.5507 versus the sterling.
Meanwhile, the buck leveled off against the yen, easing to Y83.85 from a 2-month high of Y84.39.
Industrial production in Japan was down by a seasonally adjusted 1.8 percent in October compared to the previous month, the Ministry of Economy, Trade and Industry said in a preliminary report on Tuesday, declining for the fifth consecutive month.
Looking at today’s economic calendar for the US, the S&P/Case-Shiller home price index for September will be released at 9.00 a.m. ET. Economists expect a 1% year-over-year increase in the 20-city composite house price index for September.
At 9.45 a.m. ET, traders will be presented with the results of the Institute of Supply Management-Chicago’s business survey for November. Economists expect the business barometer index based on the survey to come in at 59.8 for the month following a reading of 60.6 for the previous month.
The Conference Board will release its consumer confidence report for November at 10.00 am ET. Economists predict a reading of 52 for the consumer confidence index following a reading of 50.2 in the previous month.