The Dollar rose against the EUR on Tuesday after a Greek debt auction showed the market asked a high price to hold the assets and Greece's fiscal crisis would continue to weigh on the single currency. The Dollar also gained on talk among traders that a U.S. think tank report said the Federal Reserve was closer to raising one of its key Interest Rates.
But it was a volatile session for the Dollar/Yen pair with the U.S. currency falling to its lowest in 2 weeks against the Yen in Asia trading. The U.S currency dropped against the Japanese yen as a report showed the U.S. trade deficit increased in February more than economists expected, making the greenback less attractive to investors.
However, the U.S Dollar retraced some of its losses against the Yen in early session today ahead of a slew of U.S. economic data and Federal Reserve Chairman Ben Bernanke's testimony to Congress. Apart from Bernanke, U.S. Retail Sales and CPI numbers are due later today. Analysts say that if Retail Sales post a strong gain, they could stoke speculation that the Fed will raise rates sooner rather than later, and boost the U.S. Dollar.