Investing.com - The euro continued to rise against the dollar on Tuesday amid strong euro area data while the dollar struggled to gain ground.
EUR/USD was up 0.86% at 1.1767 by 11:53 AM ET (4:53 PM GMT) after data showing that the euro area economy grew by an annualized 2.5% in the third quarter, outstripping growth in the U.S. economy.
The euro also rose against the pound, with EUR/GBP increasing 0.75% to 0.8963.
Sterling recovered slightly after falling when UK inflation data for October came in lower than expected, rising concerns that the Bank of England had increased interest rates too soon.
GBP/USD was trading at 1.3126, up 0.08%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.52% at 93.91, pressured by the stronger euro and concerns over U.S. tax reform.
The Senate is set to review the tax bill this week. Hopes of tax reform have helped boost the dollar since mid-September. Some traders believe tax reforms could bolster growth, adding pressure on the Federal Reserve to raise interest rates, known as the "Trumpflation" trade.
On the data front, the Commerce Department reported that the producer price index increased 0.4% last month and by 2.8% from a year earlier. Economists had forecast an increase of 0.1% last month and a rise of 2.4% from a year ago.
The dollar was a touch lower against the yen, with USD/JPY slipping 0.13% to 113.46.