The dollar rose against the other major currencies on Tuesday, after data showed that the U.S. goods trade deficit widened less-than-expected in November.
Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books, reducing liquidity in the market which could result in exaggerated moves.
EUR/USD slid 0.31% to 1.0934.
The U.S. Bureau of Economic Anaysis reported that the goods trade deficit widened to $60.50 billion last month from $58.41 billion in October. Analysts had expected the trade deficit to widen to $60.90 billion in November.
Market participants were still eyeing a report on U.S. consumer confidence due later in the day after mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year.
With the first U.S. rate hike since 2006 out of the way, investors are now focusing on the pace of future rate increases.
USD/JPY held steady at 120.42.
Elsewhere, the dollar pushed higher against the pound and the Swiss franc, with GBP/USD down 0.61% at 1.4791 and with USD/CHF climbing 0.44% to 0.9927.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.45% at 0.7282 and with NZD/USD rising 0.34% to 0.6870.
Meanwhile, USD/CAD held steady at 1.3898.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.34% at 98.32, off the previous session’s 1-week low of 97.84.