Dollar Stays Firm Against Major Rivals

(RTTNews) - The U.S. dollar climbed higher against most of its major rivals on Tuesday amid bets the Federal Reserve will continue to aggressively hike interest rates.

Traders also weighed the Reserve Bank of Australia's rate decision, and U.S. economic data.

In U.S. economic news today, the Commerce Department released a report showing the U.S. trade deficit widened in the month of October.

The report said the trade deficit widened to $78.2 billion in October from a revised $74.1 billion in September. Economists had expected the trade deficit to increase to $79.1 billion from the $73.3 billion originally reported for the previous month.

The wider trade deficit came as the value of exports slid by 0.7% to $256.6 billion, while the value of imports climbed by 0.6% to $334.8 billion.

The dollar index dropped to 104.89 in the European session, but rallied to 105.63 around noon, and was last seen at 105.60, up nearly 0.3% from the previous close.

Against the Euro, the dollar firmed to 1.0468 from 1.0493.

The dollar is stronger against Pound Sterling at 1.2131, gaining from 1.2192.

Against the Japanese currency, the dollar is firm, trading at 137.04 yen, compared with 136.79 yen on Monday.

The Aussie is up marginally at 0.6690 against the Aussie, after having weakened to 0.6746 earlier in the day. The Reserve Bank of Australia lifted its key interest rate by 25 basis points and signalled further interest rate hikes to combat high inflation.

Against Swiss franc, the dollar is down marginally at CHF 0.9419, compared with the previous close of CHF 0.9427.

The dollar is up against Loonie at C$ 1.3651, gaining from C$ 1.3589, ahead of the Bank of Canada's monetary policy announcement, due on Wednesday.