WASHINGTON (dpa-AFX) - The U.S. dollar displayed strength against most major currencies on Tuesday, rebounding from losses in the previous session, as concerns about U.S.-Iran standoff faded a bit as there was no fresh escalation in tensions.
Also, markets were optimistic that the war of words between Washington and Teheran may not escalate into a full-fledged military conflict.
Trade data for the month of November, geopolitical news and economic reports from across Europe and Asia set the trend for the greenback.
According to a report from the Commerce Department showed the U.S. trade deficit shrank to its smallest level in three years in the month of November.
The report said the trade deficit narrowed to $43.1 billion in November from a revised $46.9 billion in October. Economists had expected the deficit to narrow to $43.8 billion from the $47.2 billion originally reported for the previous month.
Exports climbed by 0.7% to $208.6 billion, while the value of imports slumped by 1% to $251.7 billion.
The dollar index, which rose to 97.09 in late morning trades, stayed firm right through the day and was last seen at 97.01, up 0.35% from previous close.
Against the Euro, the dollar strengthened to $1.1147 from $1.1197, gaining nearly 0.5%. In eurozone economic news, Eurozone inflation accelerated in December, rising to 1.3%, from 1% in November. A similar higher rate was last seen in June.
Headline inflation remained well below the European Central Bank's target of 'below, but close to 2%.
Against Pound Sterling, the dollar rose to $1.3117 after having declined to a low of $1.3213 earlier in the day.
The Japanese Yen weakened to 108.54 a dollar, after edging higher around mid morning.
The Aussie shed more than 1% against the dollar, declining to 0.6867.
The Loonie and Swiss franc were down as well against the dollar, with the the Dollar-Loonie and Dollar-Franc pairs trading at 1.3004 and 0.9709, respectively.
Data released by Statistics Canada showed Canada's trade deficit narrowed to C$ 1.1 billion in November 2019 from an upwardly revised C$ 1.6 billion in October.
A report from the Federal Statistical Office showed Switzerland's consumer prices rose for the first time in three months in December. The consumer price index edged up 0.2% year-on-year in December, after a 0.1% decline in November.
On a monthly basis, consumer prices remained unchanged in December after falling in the previous three months. Economists had expected a 0.1% fall.
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