US dollar lower as country's economic data fails to excite

[NEW YORK] The dollar fell on Tuesday against the euro, the yen and the British pound as fresh data out of Washington drew an uneven picture of the US economy.

Toward 2100 GMT on Tuesday, the euro at US$1.1276, up from US$1.1183 on Monday. The dollar fell to 100.30 yen, down from 101.25 and the pound rose to US$1.3044, up from US$1.2883.

The softening of the dollar largely preceded disclosures on Tuesday from the Federal Reserve as well as the Commerce and Labour Departments offering a mixed view of economic activity.

Industrial production was up 0.7 per cent in July and housing starts rose 2.1 per cent but inflation was flat.

"The major event from the overnight session was a fairly pronounced bout of US dollar weakness," James Stanley of DailyFX said in a research note.

"Some sources were calling this a 'crash' but in actuality the move had tallied around a -0.8 per cent decline on the day peak-to-trough, which should not fit any definition of a 'crash'."

The dollar's position was also largely unaffected by televised remarks from New York Fed Chairman William Dudley, who suggested that an increase in interest rates in September was not impossible.

AFP