US dollar drops on declining consumer confidence

Story link: US dollar drops on declining consumer confidence

The euro was weaker on Tuesday, dropping against the Japanese yen despite hitting a new record high versus the Asian currency earlier in the day. The shared currency fell 0.4 percent in relation to the yen, to ¥149.15 at mid-afternoon in New York, after reaching ¥150.06 earlier. The euro was 0.1 percent lower versus the US dollar to $1.2760.

Despite its gain in relation to the euro, the US dollar was generally weaker on the day as the US Conference Board reported that consumer confidence fell to 99.6 in July, its lowest level in a year. The greenback was 0.1 percent lower against both sterling and the Swiss franc, to $1.8940 and SFr1.2360 respectively. The US currency declined 0.3 percent to ¥116.90 versus the yen. Other factors cited in the dollar’s weakness included energy prices that continue to be high despite drops in the price of crude oil and the recent declines in the housing market.

The Australian and New Zealand dollars were also higher in relation to the US dollar. The Aussie gained 0.2 percent to $0.7602 to the dollar, while the Kiwi was 0.6 percent higher in relation to the greenback, to $0.6413.