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US Dollar Recoups Early Asian Session Losses Against European Majors

The US dollar recovered most of its early losses against the European major rivals on Tuesday in Asian trading as profit taking dragged Asian stocks down, spurring demand for safe-haven currencies. Against its Asian counterpart yen, the dollar fell to a 4-day low due to across the board rallying of the Japanese unit.

Most Asian stocks opened lower today with investors going in for some profit taking after the previous session's sharp gains. A flat close on Wall Street too is contributing a bit to the decline.

Japan's Nikkei 225 index fell 0.4%, Hong Kong's Hang Seng slipped 1.45%, China's Shangai composite index dropped 2%, New Zealand's NZX 50 index lost 0.3%, South Korea's Kospi declined 0.5%, Taiwan's main index plunged 0.3%.

Meanwhile, the Australian stocks are trading flat today.

The greenback that fell to a 5-day low of 1.3417 against the euro at the beginning of the session reversed its direction shortly. By 10:15 pm ET Monday, the US currency edged higher to 1.3366 against the single currency, from Monday's New York session closing value of 1.3383. In near-term, 1.3350 is seen as the next likely resistance level for the buck.

The US dollar also reversed its course after hitting a 5-day low of 1.07 against the Swiss franc in early Asian deals today. As of 10:25 pm ET Monday, the greenback-franc pair was worth 1.0740, up from 1.0730 hit late New York Monday. The pair is presently quoted at 1.0733.

The greenback touched as high as 1.5425 against the pound around 10:00 pm ET Monday, from a low of 1.5486 hit earlier in the session. The cable that closed yesterday's deals at 1.5460 against the dollar is presently quoted at 1.5442.

On the flip side, the greenback reached a 4-day low of 93.75 against the Japanese yen around 10:15 pm ET Monday and this may be compared to Monday's North American session closing quote of 93.97. The dollar-yen pair is presently worth 93.80 with 93.30 seen as the next likely target level.

Looking ahead, Japan's small business confidence report for April is due at 1:00 am ET.

German Gfk consumer confidence for May and import price index for March, French and the Italian consumer confidence data for April and the Swiss UBS consumption indicator for March are expected in the upcoming European session.

Across the Atlantic, the S&P/Case-Shiller home price index, which tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S., is scheduled to be released at 9:00 AM ET. Economists expect a 1.3% year-over-year increase in the 20-city composite house price index in February.

The Conference Board is scheduled to release its consumer confidence report for April at 10:00 am ET. The survey, which is based on a survey of 5,000 US households, is expected to show that the consumer confidence index rose to 53.5 in April from 52.5 in the previous month.

At the same time, the Richmond Federal Manufacturing survey results for April will be made public. The headline index is expected to come in at 9 in the month.

Also, the Federal Reserve Chairman Ben Bernanke will deliver a speech at Obama Debt-reduction commission at 10:00 am ET.

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