WASHINGTON (dpa-AFX) - The U.S. dollar was weak against most major currencies on Tuesday as risk sentiment improved after U.S. stocks gained in strength, and on optimism about a big stimulus package from the European Union.
In economic news, data released by the Labor Department showed a slightly bigger than expected increase in U.S. consumer prices in the month of June. The data said the consumer price index climbed by 0.6% in June after edging down by 0.1% in May. Economists had expected consumer prices to rise by 0.5%.
Excluding higher prices for food and energy, the core consumer price index ticked up by 0.2% in June after slipping by 0.1% in May. Core prices were expected to inch up by 0.1%.
The dollar index, which slipped to 96.18, was last seen at 96.28, down nearly 0.2% from previous close.
Against the Euro, the dollar weakened to $1.1411 before recovering some ground, edging up to $1.1400 but was still trailing Monday's close by almost 0.5%.
The British Pound Sterling was flat at $1.2556, recovering from $1.2480. Data from the Office for National Statistics showed the UK economy expanded in May. with Gross Domestic Product growing 1.8% from April, when it was down 20.3%. However, this was weaker than the expected growth of 5.5%.
Industrial production logged a notable growth of 6%, following a 20.2% fall. At the same time, manufacturing was up 8.4% versus a 24.4% drop in the previous month. Nonetheless, industrial output was 19.1% lower than the pre Covid-19 level in February. In three month to May, the economy shrank 19.1%, following a 10.8% fall in April.
Against the Japanese currency, the dollar was trading at 107.25 yen, compared with 107.29 yen Monday evening. Japan industrial production declined by a seasonally adjusted 8.9% month-on-month in May. According to initial estimate, production was down 8.4%. On a monthly basis, shipments declined 8.9% in May, which was revised from 8.4% fall.
Against the Aussie, the dollar was hovering around 0.6975, down 0.5% from Monday's 0.6940. after Australia's business confidence and conditions rebounded in June. Survey data from National Australia Bank showed that Australia's business confidence index rose 21 points to 1 from -20 in May.
The Loonie was down marginally at 1.3616 a dollar, while the Swiss franc was stronger at 0.9400 a dollar, edging up from 0.9416.
In coronavirus news, several states across America and other parts of the world continue to see a rapid surge in new cases, raising fears of fresh lockdown measures.
Tedros Adhanom Ghebreyesus, the director of the World Health Organization, warned that the pandemic is worsening globally and that 'there will be no return to the old normal for the foreseeable future.'
His remarks came as Florida shattered the national record for a state's largest single-day increase in new confirmed cases. California on Monday banned indoor dining and shuttered movie theaters and bars as coronavirus infection spread beyond the Sun Belt.
Copyright RTT News/dpa-AFX
© 2020 AFX News
