Investing.com - The dollar slipped lower against the other major currencies on Tuesday, but remained supported by growing expectations for a rate hike by the Federal Reserve next week.
USD/JPY dropped 0.40% to 122.89.
The dollar remained broadly supported after Friday's strong U.S. employment data fuelled further expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16.
Separately, market sentiment weakened after 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%.
EUR/USD rose 0.30% to 1.0866.
Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.54% at 1.4972 but was lower against the Swiss franc, with USD/CHF sliding 0.48% to 0.9952.
Sterling was hit after the U.K. Office for National Statistics said that manufacturing production decreased by 0.4% in October, disappointing expectations for a decline of 0.1% and following a gain of 0.9% a month earlier.
On an annualized basis, manufacturing production fell at rate of 0.1%, worse than estimates for a gain of 0.1%, after declining at a rate of 0.4% in September.
The report also showed that industrial production inched up 0.1%, in line with forecasts and following a decline of 0.2% in the preceding month.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.90% to 0.7203 and with NZD/USD retreating 0.40% to 0.6616.
The National Australia Bank reported on Tuesday that its business confidence index rose to 5 in November from a reading of 2 the previous month.
Meanwhile, USD/CAD advanced 0.71% to trade at 11-1/2 year highs of 1.3596, 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, was down 0.13% at 98.60.