The U.S. dollar was weak against most of its major rivals on Tuesday, weighed down by a report showing a smaller-than-expected increase in the country’s durable goods orders in June.
Traders were also making cautious moves as they looked ahead to the Federal Reserve’s monetary policy announcement, due on Wednesday, for clues regarding the timing of tapering the stimulus program.
According to the data released by the Commerce Department, durable goods orders climbed by 0.8% in June after spiking by an upwardly revised 3.2% in May. Economists expected orders to rise by 2.1% compared to the 2.3% increase reported for the previous month.
Excluding orders for transportation equipment, durable goods orders rose by 0.3% in June following a 0.5% increase in May. Ex-transportation orders were expected to climb by 0.8%.
A report from the Conference Board showed consumer confidence in the U.S. saw a slight improvement from an upwardly revised level in the month of July. The report said the board’s consumer confidence index inched up to 129.1 in July from an upwardly revised 128.9 in June. Economists had expected the index to drop to 124.9 from the 127.3 originally reported for the previous month.
With the unexpected uptick, the consumer confidence index reached its highest level since hitting 132.6 in February of 2020.
The dollar index, which slid to 92.32 earlier this afternoon, recovered a bit subsequently and was last seen at 92.46, about 0.21% down from the previous close.
Against the Euro, the dollar weakened to $1.1819 from $1.1830.
The Pound Sterling strengthened by nearly 0.5%, fetching $1.3883 a unit, compared to $1.3817 Monday evening.
Against the Yen, the dollar weakened nearly 0.6%, trading at 109.77 yen, as against 110.39 yen yesterday. The yen rose as risk sentiment weakened due to the regulatory crackdown by China on U.S.-listed technology firms.
Against the Aussie, the dollar firmed to 0.7361 from 0.7382.
The dollar weakened to 1.0934 against Swiss franc. The Loonie eased to 1.2602 a dollar, dropping from 1.2551.