On Tuesday, the dollar weakened against other major currencies, as disappointing US data published in the previous session continued to weigh, while investors awaited the publication of US inflation statistics during the session.
EUR/USD grew by 0.18% to 1.1018, from Monday’s low of more than two months at 1.0961.
The dollar came under pressure after data on Monday showed that the US industrial production rose last month by 0.1%, which was lower than expected growth of 0.2%.
In addition, the Federal Reserve Bank of New York said that its Empire State manufacturing index fell to -6.80 in October from -1.99 in the preceding month. Analysts had expected an increase to 1.00.
The US dollar also came under pressure after the vice-president of the Federal Reserve System, Stanley Fischer, said on Monday that economic stability may be threatened by low interest rates.
GBP/USD rose 0.46% to 1.2239 after the Office for National Statistics said that UK consumer price index rose last month by 1.0% per year, higher than the expected growth by 0.9%. The rise was the highest since November 2014. In monthly terms, consumer price inflation rose in September by 0.2% compared to expectations for a 0.1% growth after a 0.3% growth in the previous month. The Core CPI, which excludes food, energy, alcohol and tobacco, rose last month by 1.5%, while there was expected a growth by 1.4%.
USD/JPY added 0.14% to 104.04, and USD/CHF fell 0.13% to 0.9880.
Australian and New Zealand dollars are noting an increase – AUD/USD rose 0.66% to 0.7680, and NZD/USD strengthened by 0.83% to 0.7194.
Earlier on Tuesday, Statistics New Zealand reported that the consumer price index rose 0.2% in the third quarter, exceeding expectations of no change, after increasing by 0.4% in the three months to June.
Meanwhile, the Australian dollar found support after the head of the Reserve Bank of Australia, Philip Lowe, said that he feels comfortable with the current exchange rate.
In his first speech as a governor of RBA, Philip Lowe also noted that the current low level of inflation is not an unprecedented phenomenon, undermining expectations of further rate cuts.
At the same time, USD/CAD fell 0.43% to 1.3070.
The USD Index, which tracks the greenback against a trade-weighted basket of six major rivals, was down 0.14% to 97.72.