Eurozone economy shows 'increasingly solid' growth, central banker says

Aside from Draghi's dovish comments, the euro was also weighed down by Eurozone concerns such as the Greek bailout and Italian elections.

The euro came under pressure on Tuesday after a media report that Greece may forego its next bailout payment if creditors can not strike a debt relief deal, while Asian stocks were shackled by holidays in some regional markets and the United States and UK. France's CAC40 Index slipped 0.1 percent.

However, Woods cautioned against reading "too much into it" without more details or confirmation, adding that it is unlikely that Greece would opt out of the bailout payment at this stage. Stateside, markets in the United States were closed on Monday for Memorial Day.

The European Central Bank (ECB) is waiting for the measures that will make Greek debt sustainable in the long-term in order to decide on Greece's participation in the quantitative easing program, central banker Mario Draghi said on Monday, testifying at the European Parliament's Economic and Monetary Affairs Committee in Brussels. The British pound lost 0.3 per cent, while the Australian and New Zealand dollars slid 0.2 per cent.

Although markets were open today, holidays in the UK, US and China meant that trade was extremely quiet and EUR/USD barely moved on the day.

Futures on the S&P 500 Index rose by less than 0.1 percent after the underlying gauge closed at a record high on Friday.

North Korean leader Kim Jong Un supervised Monday's test of a new ballistic missile controlled by a precision guidance system and ordered the development of more powerful strategic weapons, the North's official KCNA news agency reported on Tuesday. North Korea's state media earlier accused the US of staging a drill to practice dropping nuclear bombs on the Korean peninsula.

European blue-chip stocks fell 0.2 per cent yesterday, with Italy's banking index sliding 3.4 per cent, its biggest loss in almost four months, after two lenders sought help to cover a capital shortfall.

The dollar declined 0.4 percent to 110.88 yen.

In other currency news, the dollar strengthened against a basket of six rival currencies to trade at 97.698 after holding steady in the last session around the 97.4 handle.

Spanish consumer prices rose this month at their slowest rate since December, preliminary data published on Tuesday showed, placing inflation in line with the European Central Bank's target for the first time in five months.

Global benchmark Brent fell 0.4 percent to $52.09.

Gold advanced 0.2 per cent to US$1,268.76 an ounce.

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