Investing.com - The dollar fell to session lows against the euro and the yen on Tuesday after a report showing that manufacturing activity in the Chicago area contracted for the first time in six months in April underlined concerns over the economic recovery.
During U.S. morning trade, the dollar fell to two-week lows against the euro, with EUR/USD climbing 0.59% to 1.3179.
The Chicago purchasing managers’ index dropped to 49.0 from 52.4 in March, confounding expectations for a reading of 52.5.
Investors were awaiting the outcome of Wednesday’s Federal Reserve policy meeting for cues on the direction of monetary policy after recent weak U.S. economic data dampened expectations for an earlier-than-expected end to the bank’s asset purchase program.
Earlier Tuesday, official data showed that euro zone unemployment rose to a record in March and another report showed that inflation in the currency bloc fell more-than-expected this month.
The weak data fuelled speculation that the European Central Bank will cut rates at its meeting on Thursday after recent comments by ECB officials indicated that the bank would consider adjusting rates if economic data continued to deteriorate.
The euro zone unemployment rate rose to 12.1% in March, from 12.0% in February, as a further 62,000 people lost their jobs.
The annual rate of consumer inflation in the euro zone fell to 1.2% in April, from 1.7% in March, the lowest level in over three years and well below expectations for a decline to 1.6%.
Elsewhere, the dollar fell to session lows against the yen, with USD/JPY shedding 0.41% to trade at 97.35.
The dollar hit fresh two-and-a-half month lows against the pound, with GBP/USD advancing 0.39% to 1.5560.
The dollar was sharply lower against the Swiss franc, with USD/CHF tumbling 0.84% to 0.9286.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.21% to 1.0372, NZD/USD easing up 0.13% to 0.8576 and USD/CAD dropping 0.46% to 1.0067.
The Canadian dollar found support after official data showed that the Canadian economy expanded by 0.3% in February, above expectations for a 0.2% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.55% to 81.72.
Also Tuesday, data showed that the S&P/Case-Shiller U.S. home price index rose at an annualized rate of 9.3% in February from a year earlier, above expectations for a 9% increase.
Separately, the Conference Board said its index of U.S. consumer confidence rose to 68.1 in April from 59.2 in March, far above expectations for a reading of 60.8.
During U.S. morning trade, the dollar fell to two-week lows against the euro, with EUR/USD climbing 0.59% to 1.3179.
The Chicago purchasing managers’ index dropped to 49.0 from 52.4 in March, confounding expectations for a reading of 52.5.
Investors were awaiting the outcome of Wednesday’s Federal Reserve policy meeting for cues on the direction of monetary policy after recent weak U.S. economic data dampened expectations for an earlier-than-expected end to the bank’s asset purchase program.
Earlier Tuesday, official data showed that euro zone unemployment rose to a record in March and another report showed that inflation in the currency bloc fell more-than-expected this month.
The weak data fuelled speculation that the European Central Bank will cut rates at its meeting on Thursday after recent comments by ECB officials indicated that the bank would consider adjusting rates if economic data continued to deteriorate.
The euro zone unemployment rate rose to 12.1% in March, from 12.0% in February, as a further 62,000 people lost their jobs.
The annual rate of consumer inflation in the euro zone fell to 1.2% in April, from 1.7% in March, the lowest level in over three years and well below expectations for a decline to 1.6%.
Elsewhere, the dollar fell to session lows against the yen, with USD/JPY shedding 0.41% to trade at 97.35.
The dollar hit fresh two-and-a-half month lows against the pound, with GBP/USD advancing 0.39% to 1.5560.
The dollar was sharply lower against the Swiss franc, with USD/CHF tumbling 0.84% to 0.9286.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.21% to 1.0372, NZD/USD easing up 0.13% to 0.8576 and USD/CAD dropping 0.46% to 1.0067.
The Canadian dollar found support after official data showed that the Canadian economy expanded by 0.3% in February, above expectations for a 0.2% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.55% to 81.72.
Also Tuesday, data showed that the S&P/Case-Shiller U.S. home price index rose at an annualized rate of 9.3% in February from a year earlier, above expectations for a 9% increase.
Separately, the Conference Board said its index of U.S. consumer confidence rose to 68.1 in April from 59.2 in March, far above expectations for a reading of 60.8.