Investing.com - The dollar trimmed losses against the other major currencies on Tuesday, after the release of upbeat U.S. consumer confidence data, but the greenback was still within close distance of a two-and-a-half year trough amid fresh geopolitical tensions.
The greenback found some support after the Conference Board said U.S. consumer confidence increased again in August, underlining optimism over the health of the economy,
The yen and the Swiss franc were still stronger, with USD/JPY down 0.39% at 108.84 and with USD/CHF losing 0.75% to trade at 0.9479.
Safe-haven demand remained strong after North Korea fired a missile that flew over northern Japan, in the latest act of provocation by Pyongyang.
Following the missile test, the U.S., Japan and South Korea asked for a United Nations Security Council meeting. According to diplomats, a meeting of the 15-member Security Council is scheduled to be held later Tuesday.
Meanwhile, the greenback remained under pressure after a speech by Fed Chair Janet Yellen at the Jackson Hole economic symposium on Friday made no reference to monetary policy, disappointing some investors who had hoped she would adopt a hawkish tone.
Investors were also cautious after Tropical Storm Harvey hit Houston, Texas, and many oil refineries in the U.S. Gulf Coast, sparking worries about the storm's impact on the U.S. economy.
EUR/USD was up 0.31% at 1.2014, down from a session high of 1.2069 but still at its highest level since January 2015.
The single currency was boosted by hopes the European Central Bank will soon announce plans to taper its bond-buying stimulus program.
Though ECB President Mario Draghi gave no fresh monetary policy cues at the Jackson Hole summit, some investors interpreted his lack of comment on the recent strength of the euro as an indication that it would continue to climb.
Elsewhere, GBP/USD held steady at 1.2928, after rising to a two-week high of 1.2978 earlier in the day.
The Australian dollar was steady with AUD/USD at 0.7973, while NZD/USD rose 0.21% to 0.7272.
Meanwhile, USD/CAD edged down 0.10% to trade at 1.2496.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% at 91.93 by 10:50 a.m. ET (14:50 GMT), just off a two-and-a half year low of 91.55 reached earlier in the session.