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Dollar Weakens As Trade Concerns Ease

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The dollar is losing ground against all of its major rivals Tuesday afternoon. Concerns over a potential trade war have eased after President Donald Trump appeared to soften his position on tariff measures, amid mounting pressure from political allies.

Trump indicated proposed tariffs on steel and aluminum imports would be removed if the U.S. negotiates a "new & fair" NAFTA agreement.

New orders for U.S. manufactured goods slumped by slightly more than expected in the month of January, according to a report released by the Commerce Department on Tuesday. The Commerce Department said factory orders tumbled by 1.4 percent in January after jumping by an upwardly revised 1.8 percent in December.

Economists had expected factory orders to drop by 1.3 percent compared to the 1.7 percent spike originally reported for the previous month.

The dollar rose to an early high of $1.2325 against the Euro Tuesday, but has since dropped to nearly a 2-week low of $1.24.

Germany's construction sector grew at the weakest pace in 13 months in February, data from IHS Markit showed Tuesday. The headline construction Purchasing Managers' Index fell to 52.7 in February from an 82-month high of 59.8 in January. A score above 50 indicates expansion in the sector.

The buck advanced to a high of $1.3815 against the pound sterling Tuesday morning, but has since retreated to around $1.39.

Like-for-like sales in the United Kingdom climbed 0.6 percent on year in February, the British Retail Consortium said on Tuesday. That exceeded expectations for an increase of 0.5 percent and was unchanged from the January reading.

The greenback fell to a low of Y105.850 against the Japanese Yen Tuesday morning, but has since rebounded to around Y106.125.

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