The euro dropped versus other major currencies on Tuesday as investors trended toward lower-yielding currencies. The European currency hit a multi-month low against the sterling and backed off of near-term highs versus the yen and dollar.

The euro slipped away from a six-day high against the U.S. dollar, moving near 1.3290 in the late morning. Yesterday, the single currency reached as high as 1.3390.

In the U.S., government data showed retail sales fell 1.1 percent in March following a revised 0.3 percent increase in February. Economists had expected sales to increase by 0.3 percent compared to the 0.1 percent decrease originally reported for the previous month.

The single currency slipped to a 5 1/2-week low of 0.8885 against the sterling. The drop took the euro below a near-term support level.

The euro fell to a six-day low of 131.27 against the Japanese yen, moving toward the low end of a trading range that has lasted for about a week. If it gets below 130.94, the euro will reach a two-week low.

Cypriot Central Banker Athanasios Orhpanides said the European Central Bank will continue to discuss its policy measures, including slashing money market rates even further and purchasing assets.

France's current account deficit narrowed to EUR2.2 billion in February from EUR2.5 billion in January, the Bank of France said Tuesday.

Germany's Federal Statistical Office said in a report that the real manufacturing turnover decreased a working day adjusted 23.3% year-over-year in February, compared with a 19.9% fall in January, revised from 20% decline estimated initially.

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