The USD recovered from recent pressure that pushed it to a fresh 14-month low versus the euro, advancing on Tuesday as stocks dropped and economic data showed more weakness in the U.S. housing sector. The dollar traded at $1.4921 per euro at 9:53 a.m. in Tokyo from $1.4945 yesterday in New York, when it touched $1.4994, the weakest level since August 2008. The greenback was at 90.91 yen from 90.78 yen.
The Dollar advanced against the EUR following the release of two economic reports that showed an unexpectedly large drop in U.S wholesale prices and a continued sluggishness in the housing sector. Comments from Euro-Zone finance ministers supporting a strong Dollar further contributed to the Dollar's rise. A drop in equities also helped push the Dollar higher. The stock market continues to be an important driving force in the currency market and affect its direction.
Looking ahead to today, a relatively light news day is expected from the U.S, however the release of the Crude Oil Inventories at 14:00 GMT as well as the Beige Book at 18:00 GMT will likely provide further direction to the Dollar.