The U.S. dollar shed ground against some of its peers on Monday after a report from the Federal Reserve showed an unexpected steep drop in U.S. industrial production in the month of September.
The Fed said industrial production tumbled by 1.3% in September following a revised 0.1% dip in August.
The sharp decline surprised economists, who had expected industrial production to edge up by 0.2% compared to the 0.4% increase originally reported for the previous month.
The report said manufacturing output fell by 0.7%, with the production of motor vehicles and parts plunging by 7.2% amid the semiconductor shortage.
Utilities output also plummeted by 3.6%, as demand for cooling subsided after a warmer-than-usual August, while mining production slumped by 2.3% due to the lingering effects of Hurricane Ida.
A report released by the National Association of Home Builders on Monday showed a notable improvement in U.S. homebuilder confidence in the month of October.
The report said the NAHB/Wells Fargo Housing Market Index climbed to 80 in October from 76 in September. Economists had expected the index to come in unchanged.
The dollar index, which had climbed to 94.17 in the Asian session amid expectations the Fed will start hiking rates sooner than earlier thought, dropped below 93.94 post release of the data.
despite briefly rebounding above the flat line after falling to a low of 93.82, the currency failed to find support at higher levels, and was up just marginally at 93.96 a little while ago.
Against the Euro, the dollar is down at 1.1611, compared to 1.1599 Friday evening.
The Pound Sterling weakened a bit against the dollar and is fetching $1.3728,
The dollar is trading at 114.33 yen and 0.7412 against the Aussie.
Against Swiss franc, the dollar is flat at 0.9233, while against the Loonie, it is trading at C$1.2382.