Investing.com - The dollar remained broadly higher against a basket of other major currencies on Tuesday, after the release of mixed U.S. housing data as anticipation ahead of the Federal Reserve's monthly policy meeting continued to lend support.
The U.S. Commerce Department reported that the number of building permits issued last month increased by 11.8% to 1.275 million units from April’s total of 1.140 million. Analysts expected building permits to fall by 3.5% to 1.100 million units in May.
The report also showed that U.S. housing starts plunged by 11.1% in May to hit 1.036 million units from April’s total of 1.165 million units, worse than expectations for a decline of 3.1% to 1.100 million.
Market participants were looking ahead to the outcome of the Fed's latest policy meeting on Wednesday for a clear signal on when it could start to raise interest rates.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.31% at 95.35.
EUR/USD dropped 0.47% to 1.1232 as sentiment on the euro remained vulnerable after talks between Greece and European officials ended without an agreement on a cash-for-reforms deal over the weekend, fueling fears over a debt default that would threaten Greece’s future in the euro zone.
Prime Minister Alexis Tsipras told opposition leaders on Tuesday that Greece will not pay the International Monetary Fund on June 30 if a deal with creditors is not reached.
Greek Finance Minister Yanis Varoufakis said earlier Tuesday that he was not planning to present new reform proposals at a meeting of the eurogroup of euro zone finance ministers due to be held on Thursday.
Also Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment tumbled by 10.4 points to 31.5 this month from May’s reading of 41.9. Analysts had expected the index to drop by 4.8 points to 37.1 in June.
The pound turned higher, with GBP/USD up 0.18% to 1.5629 after the U.K. Office for National Statistics said the annual rate of consumer inflation ticked up 0.1% in May, in line with forecasts, following a 0.1% decline in April. Consumer prices were up 0.2% from a month earlier, also in line with forecasts.
Underlying inflation, which strips out food and fuel costs rose 0.9% last month, slightly below forecasts for an increase of 1.0%.
Elsewhere, the dollar was steady against the yen, with USD/JPY at 123.42 and higher against the Swiss franc, with USD/CHF rising 0.26% to 0.9318.
The Australian and New Zealand dollars were weaker, with AUD/USD slipping 0.12% to 0.7756 and with NZD/USD down 0.21% to nearly five-year lows at 0.6983.
The Aussie came under pressure after, in the minutes of its June policy meeting released on Tuesday, the Reserve Bank of Australia reaffirmed that it would consider further cuts if necessary.
The minutes also said that the Australian dollar needs "further depreciation."
Meanwhile, USD/CAD was little changed at 1.2324.