Early trade in New York: Dollar rises as weak German data hurts euro

The dollar rose on Tuesday to its highest in nearly three years against the euro, which was pressured by a German survey showing slumping investor confidence in Europe's largest economy. The euro was 0.36% lower against the dollar at $1.0795, its first fall below the $1.08 level since April 21, 2017

On Tuesday, Germany's ZEW research institute said in its monthly survey that investors' mood deteriorated far more than expected in February, on worries the coronavirus would dampen world trade. Some economists fear the coronavirus, which started in China and is impacting both the global supply chain and Chinese demand, could result in weaker German growth in the first quarter.

The euro has lost around 3.7% of its value against the US dollar this year, its worst year-to-date performance in five years. "Only when the virus issue dies down and the impact from all the stimulus around the world starts to become apparent, will we see downward pressure on the USD," Brad Bechtel, managing director, Jefferies in New York, said in a note.

Speculators increased their net long dollar position in the latest week, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday. China's offshore-traded yuan fell 0.3% to an eight-day low of 7.0109 against the dollar.

Norway's crown, closely correlated with global growth and trade, plunged to a 19-year low of 9.3378 against the US dollar., down 0.8% on the day. Against the greenback, the Australian dollar was 0.33% lower, while the New Zealand dollar fell 0.67%. The risk-sensitive currencies were jolted lower as a production warning from Apple highlighted the mounting economic costs of the coronavirus and spooked investors across Asia.

Sterling was up 0.12% at $1.3021 after British finance minister Rishi Sunak said he would deliver the budget on schedule on March 11, allaying concerns after Sunak's predecessor Sajid Javid unexpectedly resigned in a government reshuffle last week.