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Dollar remains moderately lower despite upbeat CB report

Published 03/29/2016, 10:50 AM
© Reuters.  Dollar still on the downside in cautious trade before Yellen remarks
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Investing.com - The dollar remained moderately lower against the other major currencies on Tuesday, despite the release of upbeat U.S. consumer confidence data as investors remained cautious ahead of a speech by Federal Reserve Chair Janet Yellen, due later in the day.

EUR/USD edged up 0.09% to 1.1207.

The Conference Board said its index of consumer confidence rose to 96.2 this month from a reading of 94.0 in February, whose figure was revised from a previously reported 92.2. Analysts expected the index to increase to 94.0 in March.

Investors were looking ahead to a speech by Fed Chair Janet Yellen later Tuesday for fresh indications on future interest rate hikes.

USD/JPY slipped 0.11% to 113.32.

The yen weakened after Japanese Prime Minister Shinzo Abe said earlier Tuesday that he will proceed with a planned sales tax hike next April unless the economy is hit by a severe shock.

Many analysts had expected Abe to delay the planned tax hike which could threaten Japan’s fragile economic recovery.

The dollar moved lower against the pound, with GBP/USD up 0.15% at 1.4276 and was steady against the Swiss franc, with USD/CHF at 0.9739.

Meanwhile, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.13% at 0.7555 and with NZD/USD rallying 0.98% to 0.6791.

USD/CAD fell 0.20% to trade at 1.3160.

Statistics Canada reported on Tuesday that the raw materials price index fell by 2.6% in February, compared to expectations for a 0.8% decline, after a 0.4% slip the previous month.

Year-on-year, raw material prices dropped 15.1% last month, after a 7.5% fall in January.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 95.85, moving away from Monday’s one-and-a-half week highs of 96.42.

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