Investing.com - The dollar turned lower against the other major currencies on Tuesday after data showing that U.S. retail sales unexpectedly fell last month undermined expectations for higher interest rates.
The dollar turned lower after the Commerce Department said retail sales fell 0.3% in June, compared to expectations for a 0.2% increase.
May’s retail sales were revised down to 1.0% from 1.2% previously.
The dollar had edged lower earlier in the session amid concerns that testimony by Federal Reserve Chair Janet Yellen to Congress on Wednesday could push back expectations on the timing of an initial rate hike.
The dollar fell to session lows against the euro and the yen, with EUR/USD up 0.63% to 1.1065 and USD/JPY sliding 0.34% to 122.99.
The euro gained ground but remained on the defensive as investors waited to see if the Greek parliament would support harsh austerity measures demanded by the country’s creditors in exchange for a deal to avoid financial collapse.
Greek Prime Minister Alexis Tsipras was meeting with MP's on Tuesday, but faced an uphill battle to win support for a third bailout deal offered by the country’s creditors.
Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.52% to 96.43.
The greenback extended losses against the pound, with GBP/USD advancing 0.83% to 1.5610.
Sterling was boosted earlier Tuesday after Bank of England Governor Mark Carney said the time for rate increases is moving closer, in testimony to the Treasury Committee in Westminster.
The Swiss franc rose to the day’s highs, with USD/CHF down 0.94% to 0.9413.
The commodity linked currencies were broadly higher. AUD/USD jumped 0.96% to 0.7476; NZD/USD added 0.61% to trade at 0.6734 while USD/CAD was little changed at 1.2727.