Investing.com – The dollar pushed lower and hit a more than one-week trough against the other majors currencies on Tuesday, as sentiment on the greenback remained vulnerable ahead of U.S. manufacturing data due later in the day and the Federal Reserve’s policy decision expected on Wednesday.
EUR/USD gained 0.44% to 1.1027, the highest since October 20.
The dollar remained supported amid growing expectations for a December rate hike by the Fed, despite dropping last Friday after the FBI said it would review more emails related to Hillary Clinton’s private email use while she was secretary of state.
The news sparked fresh uncertainty over Mrs. Clinton’s election prospects ahead of the November 8 vote, amid fears over the implications of a victory for Republican candidate Donald Trump.
Eslewhere, GBP/USD held steady at 1.2241.
Sterling showed little reaction after data on Tuesday showed that the Markit U.K. manufacturing purchasing managers’ index came in at 54.3 in October down slightly from 55.4 in September. Economists had expected a reading of 54.5.
Earlier Tuesday, the Bank of Japan refrained from unveiling fresh stimulus measures at the conclusion of its policy meeting, despite a warning on the inflation outlook.
In a widely expected move, the RBA left its benchmark interest rate unchanged at 1.50% on Tuesday.
Meanwhile, USD/CAD slid 0.34% to trade at 1.3363, pulling away from Friday’s seven-month high of 1.3432.
The loonie strengthened after Statistics Canada reported that the economy expanded 0.2% in August, matching forecasts, but slowing from a downwardly revised 0.4% advance in July.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.35% at 97.98.
Separately, market sentiment improved after data earlier showed that China’s official manufacturing PMI rose to 51.2 in October from 50.4 the previous month.
The Caixin manufacturing PMI also ticked up to 51.2 this month from 50.1 in September.