WASHINGTON (dpa-AFX) - The U.S. dollar recovered after early weakness on Tuesday, but largely exhibited a mixed trend against its major peers.
After falling in the Asian session on the back of data showing a notably increase in China's industrial output and retail sales in August, the dollar stayed week till a little before noon, but edged above the flat line subsequently.
Still, with the focus on Federal Reserve's monetary policy announcement, due on Wednesday, the dollar was still struggling to make a significant move into positive territory. The Bank of Japan and the Bank of England are scheduled to announce their monetary policies on Thursday.
The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to any tweaks to the accompanying statement. The central bank's latest economic projections may also attract attention.
In U.S. economic news today, a report from the Fed showed growth in U.S. industrial production slowed by much more than expected in the month of August, climbing just 0.4% compared to expectations for a jump of 1%. In July, industrial production rose by an upwardly revised 3.5%.
Although production increased for the fourth consecutive month, it remains 7.3% below its pre-pandemic February level.
A separate report from the Labor Department showed another notable increase in U.S. import prices in the month of August, with prices jumping by more than expected.
The dollar index, which dropped to a low of 92.79, rallied to 93.14 a little before noon, and was last seen at 93.10, up 0.05% from previous close.
Against the Euro, the dollar firmed up to $1.1847, gaining about 0.13%, after having weakened to $1.1863 in the European session. German economic confidence strengthened unexpectedly in September, survey data from the ZEW - Leibniz Centre for European Economic Research showed. The economic confidence index rose unexpectedly to 77.4 in September from 71.5 in the previous month. The reading was forecast to fall to 69.8.
The current conditions index advanced to -66.2 from -81.3 a month ago. The expected level was -72.0.
Sentiment concerning the economic development of the Eurozone increased by 9.9 points to 73.9 points in September. Likewise, the indicator for the current economic situation climbed 8.9 points to minus 80.9 points.
The Pound Sterling was stronger by about 0.35% with a unit of Sterling fetching $1.2890. Earlier, after easing to $1.2926, the dollar recovered to $1.2816 before paring gains. Data from the Office for National Statistics said UK payroll employment declined and the unemployment rate advanced 4.1% in three months to July.
On the Brexit front, British MPs passed the Internal Market Bill in the House of Commons by 340 to 263 votes on Monday. The Bill will now go to the upper chamber, the House of Lords.
The Japanese yen was firmer at 105.45 a dollar, as against 105.73 a dollar on Monday evening.
The Aussie firmed up to US$0.7343 before paring some gains. It was moving around US$0.7300 around late afternoon, gaining 0.16%.
The Swiss franc was flat at 0.9083 a dollar, easing from a low of 0.9052 touched earlier in the session. a report from the Federal Statistical Office showed Switzerland's producer and import prices declined in August, falling 3.5% year-on-year. The producer price index fell 2.2% annually in August and import prices decreased 6.1%.
Against the Loonie, the dollar was firmer at C$1.3187, after closing at C$1.3176 on Monday.
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