Investing.com - The dollar trimmed losses against the other major currencies on Tuesday, despite the release of a weak U.S. consumer confidence report, as data showing that the U.S. economy grew more than initially estimated in the third quarter supported the greenback.
USD/JPY slid 0.28% to 122.51.
The U.S. Conference Board said its index of consumer confidence sank to a 12-month low of 90.4 this month from a reading of 99.1 in October, whose figure was revised from a previously reported 97.6. Analysts expected the index to rise to 99.5 in November.
The report came shortly after the U.S. Commerce Department said gross domestic product grew at an annual rate of 2.1% in the three months to September, in line with expectations.
Preliminary data initially pegged U.S. growth at 1.5% in the third quarter. The U.S. economy grew 3.9% in the second quarter.
The upbeat growth data added to expectations that the Federal Reserve is on track to raise interest rates next month.
EUR/USD was steady at 1.0638, close to Monday's seven-month trough of 1.0591.
The euro found some support after the German research institute Ifo said its Business Climate Index rose to a 17-month high of 109.0 this month from a reading of 108.2 in October, beating forecasts for 108.2.
But gains were held in check since European Central Bank President Mario Draghi said on Friday that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing.
Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.40% at 1.5062 and was steady against the Swiss franc, with USD/CHF at 1.0177.
Sterling weakened after Bank of England Governor Mark Carney said on Tuesday that he did not know when interest rates should start to rise.
"The question in my mind is when is the appropriate time for interest rates to increase, and that is strongly consistent with the strength of the domestic economy,” Carney told members of Britain's parliament on Tuesday.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.49% at 0.7227 and with NZD/USD adding 0.12% to trade at 0.6529.
Meanwhile, USD/CAD slipped 0.21% to 1.3338, not far from Monday's two-month high of 1.3437
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.78, close to Monday's eight-month peak of 100.06.