WASHINGTON (dpa-AFX) - The U.S. dollar drifted lower on Monday as bond yields fell, and the Euro gained in strength after European Central Bank Governing Council member Nagel said central banks may have to raise rates in the event of inflationary pressures rise.
Data showing an increase in U.S. homebuilder confidence in the month of November helped limit the dollar's downside.
Homebuilder confidence in the U.S. has improved by much more than anticipated in the month of November, according to a report released by the National Association of Home Builders on Monday.
The report said the NAHB/Wells Fargo Housing Market Index climbed to 46 in November after rising to 43 in October. Economists had expected the index to inch up to 44.
With the much bigger than expected increase, the housing market index reached its highest level since hitting 51 in April.
The dollar index, which dropped to 106.13, was at 106.21 a little while ago, down 0.45% from Friday's close.
Against the Euro, the dollar weakened to 1.0601 from 1.0541. Against Pound Sterling, the dollar was down at 1.2682.
The dollar climbed against the Japanese currency, climbing to 154.65 yen a unit. Against the Aussie, the dollar weakened to 0.6508 from 0.6461.
The Loonie strengthened to 1.4019 against the greenback, while the Swiss franc firmed to 0.8832 a unit of the U.S. currency.
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