RTTNews - The dollar was stuck in the mud versus other major currencies on Tuesday as traders sifter through a pile of crucial economic reports, including hotter-than-forecast wholesale price data.
Producer prices jumped last month, suggesting that inflation pressures could be building. This has been a persistent fear since the government began pumping money into the economy to help fight the recession.
Energy prices helped lead the rise, but even without this volatile sector, wholesale inflation accelerated in June.
The U.S. Labor Department revealed that producer prices, a key measure of wholesale inflation, rose 1.8 percent in June.
The dollar saw virtually no movement versus the yen, staying near 93. Earlier in the week, the dollar dropped to a 5-month low of 91.73.
Against the euro, the dollar continued to show a lack of direction, bouncing back and forth between 1.3900 and 1.4000 for a fourth day.
The dollar stayed choppy versus the sterling, slipping to 1.6350 before improving by a penny. Last week, the dollar rose to a monthly high of 1.5982 before leveling off.
Renewed confidence about the health of the Canadian economy continued to hurt the dollar against the loonie. The buck dropped to a 4-week low of C$1.1351, having fallen more than 3 cents over the past few sessions.
Back in the US, retail sales increased by a little more than expected in the month of June, according to a report released by the Commerce Department on Tuesday, with the sales growth due in large part to increased sales by gas stations.
The report showed that retail sales rose 0.6 percent in June following an unrevised 0.5 percent increase in May.
Meanwhile, the Commerce Department released its report on business inventories in the month of May, showing that inventories fell by a little more than economists had been expecting. The report also showed a modest decrease in business sales.
The report showed that business inventories fell 1.0 percent in May following a revised 1.3 percent decrease in April. Economists had expected inventories to fall by 0.8 percent compared to the 1.1 percent drop originally reported for the previous month.
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