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Dollar Retreats After Early Gains

The U.S. dollar swung between gains and losses against major currencies on Tuesday as a raft of stimulus measures announced by the Federal Reserve in recent days and the massive relief package announced by the government weighed on the currency.

The dollar index rose to 99.95 early on in the day, and after a fall into the red by noon, recovered well but turned weak again in late afternoon trades.

It was last seen hovering around 99.00, down 0.19% from previous close.

Against the Euro, the dollar strengthened to $1.1022, gaining 0.23% from previous close of $1.1046.

Eurozone inflation eased to 0.7% in March from 1.2% in February, flash data from Eurostat showed. The rate was expected to slow to 0.8.

Against Pound Sterling, the dollar was flat at 1.2410, after moving between $1.2253 and $1.2470.

The U.K. economy logged flat growth in the fourth quarter, as initially estimated, as growth in services was offset by production and construction output, data from the Office for National Statistics showed.

Gross domestic product remained unchanged sequentially, as estimated, after expanding 0.5% in the third quarter.

The Japanese Yen was stronger at 107.61 a dollar, recovering well from an early low of 108.73 a dollar.

The dollar was down nearly 1% against the loonie at 1.4031. The Canadian economy advanced 0.1% over a month earlier in January 2020, slowing from a 0.3% expansion in December and matching market expectations.

Against Swiss franc, the dollar gained nearly 0.5% at 0.9627, and against the Aussie, it gained about 0.5% with the Aussie trading at 1.4031 a dollar.

A report released by MNI Indicators said its Chicago business barometer fell to 47.8 in March from 49.0 in February, with a reading below 50 indicating a contraction in regional business activity.

The Chicago business barometer remained below 50 for the ninth straight month but showed a relatively modest decrease compared to economist estimates for a slump to 40.0.

A report from the Conference Board showed a notable decrease in U.S. consumer confidence in the month of March.

The Conference Board said its consumer confidence index slumped to 120.0 in March from an upwardly revised 132.6 in February. Economists had expected the consumer confidence index to tumble to 110.0 from the 130.7 originally reported for the previous month.

The report said the present situation index dipped to 167.7 in March from 169.3 in February, reflecting a modestly less favorable assessment of current conditions.

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