Safe Haven Currency US Dollar Stronger as Investors Regained Some Risk Appetite

Safe haven currency Euro relatively dipped against a broadly stronger dollar on Tuesday, as investors regained some risk appetite and sold the single currency in favour of riskier ones such as the Australian dollar. US dollar as a global safe haven currency stronger as Yellen testifies next meeting

Reportedly from global stocks market, As global stocks hit a 2 1/2-month high, the euro followed European bond yields lower, falling 0.4 percent at $1.0969 . The single currency is increasingly used to fund so-called "carry-trades" in which investors borrow a low-yielding currency and sell it to buy a higher-yielding one.

Investors and forex traders were eyeing Wednesday's U.S. ADP jobs data clues to Friday's U.S. non-farm payrolls report. Employment is considered critical in the Federal Reserve's deliberations over whether to raise interest rates in December 2015.

Meanwhile The global safe haven currency US dollar index was up 0.3 percent at 97.181. "Clearly the December FOMC (Federal Open Market Committee)meeting is much more in the balance than we thought it was a couple of weeks ago," said RBC Capital Markets's head of currency strategy, Adam Cole.



"Every indicator we get between now and then, including the indicator we get tomorrow on the payrolls, will be seen in that context."

The Australian dollar, which is viewed as high-risk among developed world currencies and which is closely linked to the Chinese economy, fell as much as 0.9 percent against the dollar after the Reserve Bank of Australia declined to cut interest rates further.