Investing.com - The dollar gave back earlier safe-haven gains stemming from soft Chinese housing data and dipped against most major currencies on Monday as rising U.S. stocks and talk of international aid for the Ukraine enticed investors out of safe-harbor greenback positions.
In U.S. trading on Monday, EUR/USD was down 0.02% at 1.3737.
Data released earlier revealed that home prices in major Chinese cities rose 9.6% in January, short of December's 9.9% growth.
Growth fell for the first time in 14 months in January, which fueled already growing fears that the world’s second largest economy is slowing as the government tries to deal with bad loans and weak lenders, which sparked safe-haven demand for the greenback earlier.
The greenback fell in later trading after a U.S. stock-market rally enticed investors out of the greenback, while talk the Ukraine may receive international aid and avoid default also sent the U.S. currency falling as investors took up risk-on trading positions.
Meanwhile in Europe, German research institute Ifo said its business climate index came in at 111.3 in February, the highest level since mid-2011, up from 110.6 in January. Analysts had expected an unchanged reading.
German firms are benefitting from high export demand the report said, though ongoing emerging-market volatility concerns clouded the outlook.
The future expectations component of the index ticked down to 108.3 from 108.9 in January, though it did beat expectations for a decline to 108.2.
A separate report showed that the annual rate of euro zone inflation came in at 0.8% in January, unchanged from the previous month and slightly higher than the preliminary estimate for 0.7%. Consumer prices were down 1.1% from a month earlier, in line with forecasts.
The dollar was down against the yen, with USD/JPY down 0.5% at 102.45, and up against the Swiss franc, with USD/CHF up 0.06% at 0.8888.
The greenback was down against the pound, with GBP/USD up 0.28% at 1.6662.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.42% at 1.1063, AUD/USD up 0.61% at 0.9033 and NZD/USD up 0.53% at 0.8325.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% at 80.23.
On Tuesday, the U.S. is to release data on consumer confidence and a private sector report on house price inflation.