VIENNA (dpa-AFX) - The euro continued its assault on the dollar but was mixed against other major currencies on Tuesday, as the U.S. edged closer to missing a dealing to raise its debt ceiling.
Ratings agencies have warned that the world's biggest economy will likely lose its AAA credit rating if the government chooses to default on its debt obligations.
Europe's own sovereign debt crisis has been swept under the rug with last week's Greek bailout, and it remains to be seen whether the bond markets are satisfied that other European debtors will pay their bills.
Meanwhile, the European Central Bank remains in a position of 'strong vigilance' with regard to the price developments, ECB policymaker Christian Noyer was quoted as saying on Tuesday. The remarks signal the ECB may not be done hiking interest rates.
The euro rose a penny to $1.4513 versus the dollar, its highest since July 4.
Home prices in major U.S. metropolitan areas increased for the second consecutive month in May, according to a report released by Standard & Poor's on Tuesday, although prices continued to show a notable drop compared to same month a year ago.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index rose 1.0 percent on a monthly basis in May following a 0.6 percent increase in April.
There was little movement versus the yen, with the euro holding near Y113 after modest recent gains.
The single currency eased a bit to GBP 0.8820 versus the sterling, even as the British economy expanded at a slower pace as estimated for the second quarter, the Office for National Statistics said Tuesday.
U.K. Gross Domestic Product (GDP) grew 0.2 percent sequentially in the second quarter, following an increase of 0.5 percent in the first quarter.
The euro managed to stay away from this month's record low near CHF 1.14 against the Swiss franc, holding at CHF 1.16 this morning.
Copyright RTT News/dpa-AFX