Investing.com - The dollar slipped lower against the other major currencies on Tuesday, as investors remained cautious on the greenback ahead of the release of U.S. economic growth data due later in the day.
Trading volumes were expected to remain limited ahead of the Christmas Holiday.
USD/JPY slipped 0.12% to 121.05.
The dollar mildly weakened as market participants awaited of a final report on U.S. third-quarter growth for further confirmation of the strength of the economy.
But the greenback still remained supported after the Federal Reserve hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move. It was the first rise in U.S. interest rates in nearly 10 years.
EUR/USD added 0.15% to 1.0931.
The euro’s gains were expected to remain limited as inconclusive elections in Spain over the weekend sparked political concerns.
Spanish Prime Minister Mariano Rajoy said on Monday that his centre-right People's Party (PP) would talk to rivals in a bid to form a government, but the left-wing parties reportedly said they would not want Rajoy to remain in power.
Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.4878 and was lower against the Swiss franc, with USD/CHF down 0.09% at 0.9912.
Earlier Tuesday, the U.K. Office for National Statistics reported that public sector net borrowing rose to £13.56 billion in November from £6.75 billion in October, whose figure was revised from a previously estimated £7.47 billion.
Analysts had expected public sector net borrowing to rise to £11.00 billion last month.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.53% at 0.7229 and with NZD/USD advancing 0.78% to 0.6814.
Meanwhile, USD/CAD edged down 0.14% to trade at 1.3939, still close to Friday’s more than 11-year high of 1.4000.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 98.32.