US dollar renews slide against euro

NEW YORK—Weak economic data sent the dollar to three month lows against the euro on Tuesday, as faith in the greenback received another blow.

"Another day has meant another round of selling in the US dollar," said Kathy Lien of Global Forex Trading.

"With the deterioration of US home sales and a decline in US factory orders, the euro reached a three-month high against the dollar as it broke through the key 1.32 resistance level to reach a high of 1.3261."

The euro hit $1.3225 in New York at 2300 GMT, up from $1.3179 late Monday.

"Disappointing economic data has sparked the latest breakdown in the US dollar and added fuel to the speculation that the Federal Reserve could resume quantitative easing next week," Lien said pointing to looser monetary policy.

A data-rich day saw reports of a slight dip in US consumer spending as well as a fall in factory orders and pending home sales, adding to fears about the state of the US recovery.

The dollar dropped against the Japanese currency, to 85.80 yen from 86.44 Monday.

Against other key currencies, the dollar rose to 1.0396 Swiss francs from $1.0391, while the British pound rose to $1.5944 from $1.5891.

Source: Inquirer