Investing.com - The dollar slid lower against the yen and the euro on Tuesday, but remained broadly stronger against the commodity linked currencies as the latest trade data out of China added to fears over slowing growth.
Data on Tuesday showing that Chinese exports fell for the fifth consecutive month added to fears over a slowdown in the world’s second-largest economy.
Exports fell 6.8% on a year-over-year basis in November as weak global demand continued to weigh. Imports were also down, falling 8.7%.
USD/JPY was down 0.27% to 123.04 after Asian equities turned lower in the wake of the Chinese trade data, bolstering demand for the safe haven yen.
EUR/USD rose 0.34% to 1.0870, still well below last Thursday’s highs of 1.0980.
The commodity related currencies remained under pressure as fears over slowing demand from China fueled a broad-based rout in the commodity market.
AUD/USD was down 0.58% to 0.7224, while NZD/USD was trading at 0.6643 after tumbling 1.43% in the previous session.
The Canadian dollar fell to fresh eleven-year lows, with USD/CAD rising 0.2% to 1.3527 as oil prices remained close to the lowest levels since early 2009.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.18% to 98.55.
Demand for the dollar continued to be underpinned by expectations that the Federal Reserve is on track to raise interest rates for the first time since 2006 at its upcoming meeting on December 15-16. Higher interest rates would make the dollar more attractive to yield-seeking investors.