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The U.S. dollar turned in a subdued performance on Tuesday amid easing prospects of the Federal Reserve tapering its bond buying program anytime soon.

The Commerce Department released a report this morning showing a rebound in U.S. new home sales in the month of July.

The report showed new home sales increased by 1% to an annual rate of 708,000 in July after slumping by 2.6% to an upwardly revised rate of 701,000 in June.

Economists had expected new home sales to jump by 3.6% to a rate of 700,000 from the 676,000 originally reported for the previous month.

Investors await a highly-anticipated speech by Fed Chairman Jerome Powell during the virtual Jackson Hole Symposium on Friday for more clarity on the Fed’s tapering timeline.

The dollar index, which slid to 92.81 in late morning trades, recovered to 92.97 by noon, but faltered again and was last seen hovering around 92.90, down 0.07% from the previous close.

Against the Euro, the dollar weakened to $1.1758.

The Pound Sterling firmed up a bit against the dollar, fetching $1.3731 a unit, compared to $1.3722 Monday evening.

Against the Yen, the dollar was little changed at 109.69 yen.

The dollar slipped to 0.7258 against the Aussie, losing nearly 0.7%. The Swiss fran slightly weak at 0.9129 a dollar.

Meanwhile, the Loonie firmed to 1.2591 a dollar, gaining from around 1.2655, riding on oil’s gains.


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