The euro saw some weakness against other majors on Tuesday in New York. The currency fell amid reports the German economy will contract at a much-larger-than-expected rate.
The euro fell to a six-day low of 1.3477 against the dollar on Tuesday. Last week, the single currency hit a 2 1/2 month high of 1.3738.
The European currency fell to a nine-day low of 0.9172 against the British pound. The euro has been trending lower for about a week, moving away from a 1 1/2-month high of 0.9484.
In the UK, annual inflation increased to 3.2% in February from 3% in the prior month, the Office for National Statistics said. Economists had expected consumer price inflation to ease to 2.6%. Despite strong negative contributions from housing and motoring expenditure, retail prices remained flat on a yearly basis, the lowest level since 1960. After the 0.1% gain in January, economists were looking for an annual fall of 0.7% in February.
The euro slipped away from a four-month high against the yen, falling near 132.10. Yesterday, the single currency hit as high as 133.44.
On the economic front, the German government forecast the largest Eurozone economy to contract in the range of 4% to 4.5% this year, the German newspaper Bild reported. In January, the government had estimated an annual contraction of 2.25% for 2009.
The German Federal Statistical Office said exports fell 6% year-on-year in the fourth quarter to EUR233.8 billion. In price-adjusted terms, exports were down 7.8% in the fourth quarter.
Household consumption expenditure in manufactured goods decreased 2% month-on-month in February after rising 1.7% in January, the French statistical office INSEE said. The decline was twice quicker than the expected fall of 1%.
The Eurozone recorded a current account deficit of EUR12.7 billion in January, on a seasonal and working day adjusted basis, larger than a deficit of EUR7.6 billion in December, the European Central Bank said.
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