he dollar saw very little movement versus most majors on Tuesday, taking a breather after falling to its lowest levels of the year during the previous session.
Its been a brutal stretch for the dollar, which has given back a major portion of its post-economic meltdown gains. During the throes of the near-collapse of the financial system, the dollar rose to multi-year highs, but has since fallen under the weight of increased risk appetite.
With stocks rocketing higher, traders have been in hot pursuit of riskier, higher-yielding assets. Consequently, the dollar has fallen to levels not seen since 2008 versus all majors but the yen.
Traders on Tuesday weighed a pair of economic reports, but participants will be marking time until Friday's pivotal monthly jobs report. Pending home sales increased for the fifth consecutive month in June, according to industry data.
The dollar barely budged on either report, staying near yesterday's 8-month low of 1.4444 versus the euro. Meanwhile, the buck improved very slightly from a 10-month low of 1.7004 against the sterling.
With the price of oil stabilizing near $70, the dollar held its ground versus the loonie. After hitting a 10-month low of C$1.0630, the dollar hovered near C$1.0700.
The buck extended its run of choppy trading versus the yen, bouncing back and forth around 95.
In global economic news, the Eurostat said in a report that Eurozone industrial producer price index or PPI dropped 6.6% year-over-year in June, compared with a 5.9% fall in the previous month. The May month figure is revised from 5.8% decline reported initially. The PPI came in line with economists' expectations.
U.K.'s CIPS/Markit Construction Purchasing Managers' Index rose to 47 in July, a survey from the Chartered Institute of Purchasing & Supply and Markit Economics showed Tuesday. Economists were expecting the index to rise to 45 from 44.5 logged in June. However, the index stood below the neutral level.
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