The dollar held steady against the other major currencies on Tuesday, as oil prices resumed their downward trend and as concerns over global economic growth persisted.
USD/JPY was down 0.18% at 120.81.
The safe-haven yen strengthened as oil prices moved back toward $31 a barrel after hovering above $34 a barrel for the past three sesssions.
Meanwhile, investors remained cautious amid ongoing concerns over global economic growth after data on Monday showed that manufacturing activity in China contracted for a sixth straight month in January.
EUR/USD rose 0.23% to trade at 1.0912.
Earlier Tuesday, Eurostat said that the euro zone’s unemployment rate fell to 10.4% from 10.5% in November. This is the lowest rate recorded in the euro area since September 2011. Analysts had expected the jobless rate to hold steady at 10.5% in December.
The report came shortly after Germany’s Federal Statistics Office said the unemployment rate fell to 6.2% in January from 6.3% a month earlier. Analysts had expected the jobless rate to hold steady at 6.3% last month.
The number of unemployed people in Germany decreased by 20,000 last month, better than expectations for a drop of 7,000. Jobless claims fell by 16,000 in December, whose figure was revised from a previously reported decline of 14,000.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.35% at 1.4382 and with USD/CHF adding 0.21% to 1.0221.
Sterling came under pressure after research firm Markit said its U.K. construction purchasing managers’ index fell to 55.0 last month from a reading of 57.8 in December. Economists had expected the index to decline to 57.5 in January.
Meanwhile, USD/CAD climbed 0.51% to 1.4015, as declining oil prices dampened demand for the commodity-related loonie.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.82% at 0.7055 and with NZD/USD retreating 0.86% to 0.6491.
In a widely expected move, the Reserve Bank of Australia held its benchmark interest rate at 2.00% on Tuesday.
In a statement following the decision, the central bank said however that subdued inflation may “provide scope for easier policy”.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.01.
