RTTNews - The dollar edged slightly lower in choppy trading versus other major currencies Tuesday morning in New York amid renewed appetite for resource-linked currencies and European counterparts.
With little other first-tier economic data from around the world to focus on, traders may pay a bit more attention to wholesale inventories figures for April set to be released from the Commerce Department. Economists expect inventories to decline 1.1 percent.
The dollar has firmed up in June following a dismal stretch in May that saw the buck plunge to multi-month lows versus a basket of majors. Over the past week, speculation that the Federal Reserve may be compelled to raise interest rates, giving the dollar a measure of support.
However, the dollar gave back some of June's gains this morning, falling sharply versus resource-linked currencies like the loonie and aussie as traders bet that commodities prices would continue to rise.
Versus the euro, the dollar softened a bit to 1.3980 from an 11-day high of 1.3804. With the loss, the dollar moved back toward a 5-month low of 1.4338, set June 2.
Germany's exports contracted at an even faster pace annually in April, as global demand continued to remain weak, an official report showed Tuesday.
Data released by the Federal Statistical Office said exports dropped 28.7% year-on-year in April, faster than a 16.2% fall in March, and was the biggest drop since the country's exports embarked on a declining trend in November last year. Further, the latest decline is reportedly the largest on record.
The dollar also tailed off versus the sterling, slipping to 1.6200 from yesterday's 2-week high of 1.5801. A week ago, the dollar set a 6-month low of 1.6201.
House prices in the UK dropped 13% year-on-year in April, after falling 13.6% in March, the Department of Communities and Local government said in a report Tuesday. Economists expected a fall of 13.3%.
Crude oil remained above $68 a barrel Tuesday morning, hurting the dollar versus the petro-linked loonie. The buck slipped to 1.1110, down from yesterday's 2-week high near 1.1300. On a longer term basis, the dollar remains near a 7-month low of 1.0822, set 10 days ago.
The buck was able to hold onto most of its recent gains against the yen, staying just above 98. Last Friday, the dollar rose to a 4-week high of 98.87.
Tuesday, a report from Japan's Cabinet Office showed that the leading index increased to 76.5 in April from 75.5 in March. Economists expected the reading to come in at 77.2.
At the same time, the coincident index moved up to 85.8 from 84.8 in the previous month. The lagging index, however, decreased to 86.1 from 87.5 in March.
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