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Dollar slips lower vs. rivals ahead of U.S. data

Published 10/20/2015, 06:17 AM
Dollar loses ground vs. other majors, U.S. data on tap
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Investing.com - The dollar slipped lower against the other major currencies on Tuesday, as investors awaited the release of U.S. housing and building data later in the day after mixed reports last week left markets uncertain over the timing of the next U.S. rate hike.

The dollar was lower against the euro, with EUR/USD advancing 0.50% to 1.1383.

The greenback remained under pressure after a batch of U.S. data last week painted a mixed picture of the country's economy and fuelled further uncertainty over when the Federal Reserve plans to raise interest rates.

Meanwhile, the single currency strengthened as investors looked ahead to a European Central Bank meeting later in the week amid speculation that it could flag plans to enlarge its stimulus program.

The dollar was steady against the yen, with USD/JPY at 119.56.

Markets were still jittery after data on Monday showed that China’s economic growth slowed to 6.9% in the third quarter, down from 7% in the previous quarter. The figure is the country's slowest growth rate since 2009.

Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.15% at 1.5488 and with USD/CHF sliding 0.74% to 0.9497.

In Switzerland, data earlier showed that the trade surplus widened to 3.047 billion Swiss francs in September from a downwardly revised 2.862 billion Swiss francs the previous month. Analysts had expected the trade surplus to narrow to 2.510 billion Swiss francs last month.

The Australian and New Zealand dollars were stronger, with AUD/USD gaining 0.61% to 0.7291 and with NZD/USD climbing 0.71% to 0.6840.

Earlier Tuesday, in the minutes of its October policy meeting, the Reserve Bank of Australia said the Aussie's depreciation and low interest rates have helped the local economy rebalance.

The comments staved off any expectations for a rate hike by the RBA in the near future.

Meanwhile, USD/CAD slipped 0.10% to trade at 1.3005.

Canada elected its first Liberal government in almost a decade late Monday, sparking uncertainty over the economic outlook.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.38% at 94.65.

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