RTTNews - The dollar was little changed in choppy dealing versus most majors on Tuesday, with traders still looking for more clues about the health of the American economy after a mixed batch of data, including a tamer than forecast inflation report.
Wholesale prices rose much less than expected last month, easing concern that inflation pressures would force authorities to back off their stimulus efforts to keep prices in check.
The U.S. Labor Department revealed that producer prices rose 0.2 percent in May. This followed a 0.3 percent increase for April and a 1.2 percent decline for March.
Meanwhile, Eurozone annual inflation stayed flat in May, the lowest since records began in 1996, raising deflationary concerns.
The dollar came under modest pressure in early dealing versus the euro, but managed to steady by mid-day. The buck hovered between 1.3800 and 1.3900 for most of the day, having eased a bit from yesterday's 4-week high of 1.3747.
Versus the sterling, the dollar held its ground throughout, staying between 1.6400 and 1.6500. Since hitting a 6-month low of 1.6662 in early June, the dollar has fallen no further.
The buck weakened against the yen Tuesday after the Bank of Japan maintained its key interest rate near zero, but boosted its economic assessment. The dollar fell as low as 96.06, having been above 98 for the better part of the last few weeks.
Back in the US, industrial production continued to decrease in the month of May, according to a report released by the Federal Reserve on Tuesday, with production falling by a little more than economists had been anticipating.
On the housing front, a report showed that housing starts rose 17.2 percent to an annual rate of 532,000 units in May from the revised April estimate of 454,000.
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