Investing.com - The dollar slipped lower against the other major currencies on Tuesday, as risk sentiment deteriorated after hopes for an oil production cut were crushed, while markets eyed the release of U.S. manufacturing data due later in the day.
USD/JPY dropped 0.76% to 113.74.
Market sentiment weakened after a meeting between oil ministers from Saudi Arabia, Russia, Qatar and Venezuela ended with consensus to freeze output, but not to cut production.
EUR/USD edged up 0.17% to trade at 1.1176.
The euro found support after European Central Bank President Mario Draghi said on Monday that the central bank would not hesitate to act to boost euro zone growth and inflation, hinting at the possibility of further easing measures.
Meanwhile, data on Tuesday showed that German economic sentiment fell sharply this month, amid concerns over falling oil prices, slowing global growth and heightened market volatility.
The ZEW index of German economic sentiment fell to 1 this month from 10.2 in January, but was still slightly better than economists’ forecasts for a reading of zero.
Elsewhere, the dollar was lower against the pound, with GBP/USD up 0.19% at 1.4463 and was steady against the Swiss franc, with USD/CHF at 0.9868.
Sterling strengthened after an opinion polls showed that there was a clear majority in favor of Britain remaining in the European Union.
Separately, the U.K. Office for National Statistics said the rate of consumer price inflation rose by 0.3% last month, matching forecasts and up from 0.2% in December.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a rate of 1.2% last month, below forecasts for 1.3% and down from 1.4% in December.
Meanwhile, the Australian dollar was stronger, with AUD/USD up 0.27% at 0.7158, while NZD/USD retreated 0.70% to 0.6601.
In the minutes of its February policy meeting on Tuesday, the Reserve Bank of Australia said that record-low interest rates are helping consumer spending and house building while a lower currency is improving firms' competitiveness.
Earlier Tuesday, Statistics New Zealand said that retail sales increased by 1.2% in the fourth quarter, compared to expectations for a 1.4% rise.
Core retail sales, which exclude automobiles and gas stations, rose 1.4% in the last quarter, exceeding expectations for a 1.1% gain.
Separately, the Reserve Bank of New Zealand said its inflation expectations for the next two years ticked down to 1.6% in the fourth quarter, from 1.9% in the three months to December.
USD/CAD declined 0.36% to trade at 1.3788, as the rebound in oil prices helped the commodity-related Canadian dollar.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.24% at 96.52.