The U.S. dollar hit 10-month lows against some commodity currencies on Tuesday on a growing appetite for risky assets and lost further ground to the euro after weak U.S. economic data reinforced views that Federal Reserve monetary policy would remain dovish.
The Australian dollar hit $0.7827, its highest level against the dollar since last June, while the New Zealand dollar touched $0.7055, also its highest since last June, on the back of gains in oil prices. The Canadian dollar hit its highest level since last July.
Analysts said a strike by oil workers in Kuwait, which continued for a third day and nearly halved production from the OPEC member, boosted crude prices and commodity currencies. Concerns over China's economic growth have also diminished, while the likelihood of a rapid string of Fed interest rate hikes this year has receded, they said.
The dollar gained against the safe-haven yen for a second straight day, however, as investors moved into riskier currencies. The dollar was last up 0.17 percent against the yen at 109.14 yen.