The dollar firmed against its European rivals Tuesday morning in New York as stock futures indicated a rough open on Wall Street, boosting demand for the safe haven greenback.
Traders reacted to news that Eurozone factory gate inflation slowed less than expected in February.
The dollar rose to $1.3315 versus the euro, extending its month-long run of choppy dealing. The pair has been stuck near this mark amid confusion about whether the European Central Bank or Federal Reserve will be next to ease monetary policy.
Euro zone producer price inflation moderated to 3.6 percent year-on-year in February from a revised 3.8 percent in January, Eurostat said Tuesday. Nonetheless, it stayed above the consensus forecast of 3.5 percent.
The dollar trimmed its recent losses versus the sterling, improving to $1.5975 from a 4-month low of $1.6065.
The buck remained under pressure versus the yen, sliding to a 4-week low of Y81.54 before finding its footing. With the overnight losses, the dollar edged further from an 11-month peak above Y84 set back in March.
The Commerce Department is due to release its report on factory goods orders for February at 10 am ET. Economists estimate a 1.5 percent increase in orders for factory goods following a 1 percent drop in the previous month.
Durable goods orders, which make up the bulk of factory goods, rose by a less than expected 2.2 percent in February compared to the previous month.
The Federal Reserve is due to release the minutes of its March 13th meeting at 2 pm ET.
by RTT Staff Writer
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